NHIF wants Cotu suit against new rates dismissed

Minister for Medical Services Anyang Nyongo (Right) gestures at a press conference with the chairman of the NHIF Board Richard Muga. NHIF wants case challenging the new rates dismissed at the Industrial court. FILE | NATION


By SAM KIPLAGAT
Posted Friday, August 20 2010 at 13:55

The Industrial Court has no powers to hear and determine a dispute filed by the Central Organisation of Trade Unions that seeks to challenge the revised National Hospital Insurance Fund rates.

In a notice of objection to the proceedings, the National Hospital Insurance Fund (NHIF) says that the Industrial Court lacks jurisdiction to hear the case.

The case, filed by Cotu early this month could not, however, proceed on Friday after the court was informed that a lawyer representing the workers’ umbrella union was not present.

Through lawyer Chacha Odera, NHIF said it was ready to proceed with the notice of objection but Ms J.A. Guserwa was not in. He said that the lawyer was bereaved and had travelled upcountry for the burial slated for Saturday.

Mr Odera also asked Justice James Rika to allocate the case an earlier date due to the urgency of the matter and in the interest of the public. The judge adjourned the matter and asked the parties to appear before him on Monday afternoon.

In the case, Cotu moved to court accusing NHIF of allegedly revising the rates without consultations with the union and or its social partners. According to Cotu, NHIF board has refused to seek approval or consultations before gazetting the new rates despite recognising Cotu’s role.

In the claim, Cotu says that without observing Industrial relations and requirements of section 5(e) of the NHIF Act, the board issued a notice on July 2 announcing the new rates to be effected against the workers salaries against their will.

NHIF board chairperson Richard Muga and chief executive officer Richard Kerich published the new rates in a Kenya Gazette and later wrote to employers asking them to effect the new rates on September 1.

“We wish to advise employers and contributors that the newly gazetted NHIF contribution rates take effect from 1st September to enable provision of Outpatient Care Services from 1st October, ” said the letter.

But in its suit papers, Cotu wants NHIF restrained from “interfering, enforcing or implementing” the new rates until the case is heard and determined.

The new rates will see Kenyans who earn over Sh100,000 a month handing over Sh2,000 while those earning Sh5,999 and less will pay Sh150.

Currently, all workers pay a mandatory Sh320 per month.