FKE, NHIF officials meet to discuss proposed new rates

Politics and policy

Federation of Kenya Employers (FKE) executive director Jacqueline Mugo, FKE chairman Linus Gitahi and National Hospital Insurance Fund (NHIF) chairman Mohamud Ali during a members consultative meeting on the proposed NHIF rates on October 22, 2014. PHOTO | SALATON NJAU | NATION MEDIA GROUP 

By GERALD ANDAE

In Summary

• Under the proposal, formal sector workers earning a gross salary of Sh100,000 and above will make a monthly contribution of Sh1,7000, up from the current Sh320.
• The scheme has a separate band for the self-employed, who will pay Sh500 per month for similar range of services.
• FKE argues that the new rates are too high and not in line with inflation that is affecting the workers.

The Federation of Kenya Employers will meet in the next two weeks to decide the fate of the new rates as proposed by the National Health Insurance Fund (NHIF).

This follows the meeting between the public health insurer and the employers’ body on Wednesday to discuss the new changes that they argue is too high and not in line with inflation that is affecting the workers.

Speaking to the media after the meeting, FKE chairman Linus Gitahi said the discussions were positive and that the decision to be made by the body will be beneficial to the consumers.

“We will agree on the way forward in the coming days and the decision that we will arrive at should be beneficial to all workers,” said Mr Gitahi.

READ: Employers query Cotu deal on higher NHIF rates

Mr Mohamed Ali, the chairman of the NHIF noted that the move to increase the fund was informed by the need to provide good health care to the Kenyan workers. He said that the current rates are low and can only cater for the inpatients, hence not providing enough services to the outpatients.

“The current rates were introduced 24 years ago and they were based on the highest earning civil servant, currently, the cost of everything, including medicine have gone up,” said Mr Ali.

Under the proposal, formal sector workers earning a gross salary of Sh100,000 and above will make a monthly contribution of Sh1,7000, up from the current Sh320. The scheme has a separate band for the self-employed, who will pay Sh500 per month for similar range of services.

Last month, the Central Organisation of Workers Union (COTU) endorsed the new rates and made an undertaking to withdraw the case that they had filed to stop the implementation by the fund.

READ: Cotu approves rise in NHIF premiums to Sh1,700 monthl