Rotich said the annual payment intended to ease suffering of the segment will see all elderly persons in the country get a National Health Insurance Fund (NHIF) cover.
Better health care has seen life expectancy in the country rise even as the elderly lack pension plans.
The World Health Organisation (WHO) report of 2015 estimates life expectancy in Kenya at 63 years.
All people above the age of 70 will receive monthly pay from the government and free medical cover from January, irrespective of their income level.
Treasury secretary Henry Rotich said the annual payment—Sh7.4 billion overall —intended to ease suffering of the segment will also see all elderly persons in the country get a National Health Insurance Fund (NHIF) cover.
This is an enhancement given that the previous cash transfer initiated in 2012 targeted individuals above 65 years living in extreme poverty.
Better health care has seen life expectancy in the country rise even as the elderly lack pension plans. It gets worse if they live in urban areas where inflation is unforgiving.
“I therefore propose that beginning January 2018, all persons above the age of 70 years will receive a cash transfer in the form of a monthly stipend and NHIF cover that will be paid by the Government,” he said in the Budget Statement yesterday. Mr Rotich said the policy is an indication that the government cares for its senior citizens. He said old persons covered under the existing transfers for those over 65 years and those with disability will continue.
In January 2015 at the social protection conference in Nairobi, President Uhuru Kenyatta assured attendees that the government was committed to reducing poverty across the country and that money for social protection would continue to rise every year.
The then Labour Cabinet Secretary Kazungu Kambi, whose ministry is in charge of the payments, said there were plans to elevate it to a revolving fund to ensure it is sustainable.
The World Health Organisation (WHO) report of 2015 estimates life expectancy in Kenya at 63 years. When the cash transfer for the elderly programme was introduced the plan was to ensure that its senior citizens do not slide into extreme poverty, hunger and consequently, premature death.
Last year, the NHIF introduced a new package catering for members with chronic illnesses such as diabetes, hypertension, and cancer and kidney failure.
The highest monthly contribution under the fund is Sh1,700 for those earning Sh100,000 and above. Those earning between Sh12,000 and Sh14,999 contribute the lowest monthly premium of Sh500.
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