Employers' body opposes new NHIF rates

  SHARE BOOKMARKPRINTEMAILRATING

Federation of Kenya Employers (FKE) Executive Director Jacqueline Mugo. FKE said it was opposed to the new health insurance rates September 18, 2012.  NATION MEDIA GROUP

By AGGREY MUTAMBO amutambo@ke.nationmedia.com
Posted  Tuesday, September 18  2012 at  15:09

IN SUMMARY

• Employers' body accuses Medical Services minister Anyang Nyong’o of “unilaterally” increasing the National Hospital Insurance Fund (NHIF) monthly deductions.

The Federation of Kenya Employers (FKE) has opposed the new health insurance rates.

FKE on Tuesday accused Medical Services minister Anyang Nyong’o of “unilaterally” increasing the National Hospital Insurance Fund (NHIF) monthly deductions.

Executive Director Jacqueline Mugo said the employers' body remains opposed to the new rates since Prof Nyong’o did not engage all stakeholders as had been agreed in May.

“Nothing much has changed since the decision to suspend the proposed implementation of enhanced contributions was reached in May 2012,” she said in a statement.

FKE further demanded that the Ministry comes clear on the scandal that rocked the NHIF at the start of this year before subjecting workers to higher rates. NHIF was accused of making irregular payments to clinics in the civil servants' medical scheme saga.

“It is not lost on us that the results of several investigations by various government agencies are yet to be released. The image of the Fund needs to be rebuilt before one can even begin to think of increasing contributions.”

Last week, Prof Nyong’o announced increased deductions for the Fund to start on October 1.

Under the rates, the lowest paid worker earning Sh6, 000 will contribute Sh150 while the highest paid employee earning Sh100, 000 and above will part with Sh2, 000 per month.

Self-employed and volunteers will contribute Sh500 and Sh300 respectively in what Prof Nyong’o said would include in-patient service.

Share This Story

  

Read mischief

The minister argued that the rates are lower than what the International Finance Corporation had initially suggested for the country in 2010.

But on Sunday, workers under the umbrella body of Central Organisation of Trade Unions (Cotu) warned they would go on strike if the new rates are implemented. Cotu Secretary-general Francis Atwoli said in a statement that he read mischief in the minister’s move to increase the rates.

“In a weeks’ time, Cotu will be revealing the forces and the motive behind the minister’s obsession and we have proved beyond doubt that the minister is not genuine in his push for the new NHIF rates,” said Mr Atwoli.

Cotu demanded reforms in the way the Fund is managed especially after allegations of misappropriation of contributor’s money and nepotism.