Counties

AAR suspends medical cover for 12,000 City Hall workers

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Nairobi Deputy Governor Anne Kananu. FILE PHOTO | NMG

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Summary

  • More than 12,000 City Hall staff will once again have to pay out of pocket to access medical services after AAR Insurance Kenya suspended medical cover.
  • This follows failure by the Ann Kananu-led county government to clear an outstanding premium of Sh259.9 million to AAR Insurance.

More than 12,000 City Hall staff will once again have to pay out of pocket to access medical services after AAR Insurance Kenya suspended medical cover.

This follows failure by the Ann Kananu-led county government to clear an outstanding premium of Sh259.9 million to AAR Insurance.

Raising the red flag, Kenya County Government Workers Union Nairobi branch secretary Festus Ngari revealed that the workers have not been able to access credit facilities through the medical cover since Friday last week.

He said the new development has seen a number of county staff turned away from hospitals where they went to seek medical services.

This is the second time this year the medical insurer is suspending its services over non-payment by City Hall. A similar suspension was effected in late March, 2021.

“City Hall sought a 10-day extension to clear the outstanding premium which was until May 7 2021. Why commit if you can't honour? Are they waiting for staff to die so that they know the seriousness of lacking a medical cover? This is unethical as people are doing business with staff’s lives,” said Mr Ngari.

Wednesday, AAR Insurance Managing Director Nixon Shigoli said they have suspended their services to the city county staff, and workers will now have to pay cash to access medical services.

“Yes, the account has reverted to cash basis since we are yet to be paid full premiums to allow for credit services with our service providers. This means staff will have to pay cash and seek reimbursement once premium is paid,” said Mr Shigoli.

The suspension on Friday last week came after a warning by AAR through a letter dated April 29, 2021 addressed to the County Secretary where the insurance firm reminded City Hall to pay the premium balance for the medical scheme on or before May 7, 2021.

This was after the city county government had committed, through an April 15, 2021 letter, to clear the outstanding premium after making a partial payment of Sh270.1 million.