Thursday, May 28, 2015

NHIF calls meeting with unions over controversial rates

The front entrance of the NHIF building in Nairobi. Employers have taken issue with the government’s requirement that the new NHIF rates be deducted based on employees’ gross pay, as opposed to the basic salary. FILE PHOTO | NATION MEDIA GROUP
The front entrance of the NHIF building in Nairobi. NHIF Chief Executive Officer Simon ole Kirgotty has now called a consultative meeting with public servants and teachers to discuss the controversial new NHIF rates. FILE PHOTO | NATION MEDIA GROUP 
By ISAAC ONGIRI
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National Hospital Insurance Fund Chief Executive Officer Simon ole Kirgotty has now called a consultative meeting with public servants and teachers to discuss the controversial new NHIF rates.
The NHIF boss has written to Trade Unions Congress (TUC-K) Secretary-General Wilson Sossion, inviting its officials for a consultative meeting to address differences over the rates.
“Further to consultations held on January 28-30 2015 on the revised NHIF contributions, NHIF is committed to engaging TUC-K in further consultations on the new rates,” wrote Mr Kirgotty, in a letter dated May 27.
He further stated: “This is to invite you to a consultative meeting on Tuesday, June 2015 at the NHIF building, NHIF boardroom, 10th floor at 10am.”
Talks between the fund and the union collapsed in January after the NHIF unilaterality gazetted new rates before agreeing on them with various stakeholders.
Already, teachers and civil servants, who comprise the majority of the TUC-K membership, have threatened a major industrial action to protest against the new rates by July if the government does not stop the deductions.
TSC IMPLEMENTED ORDER
Last month, the Teachers Service Commission (TSC) implemented the order by the NHIF on the new rates but this month, teachers have been excluded from the levies.
No explanation has been given by the TSC on why it failed to make the deductions, but Mr Sossion confirmed that teachers have not paid the new rates this month.
“This month the TSC has not made any deductions based on the new rates but last month they did. We insist that if NHIF want to stick to the new rates then teachers are better off with the new comprehensive insurance scheme by the TSC through AoN, which will come into effect from July 1,” he stated.
Union of Kenya Civil Servants chairman Tom Odege confirmed that though civil servants were spared the deductions by various ministries in April, they have paid the contributions this month as gazetted.
“We are saddened that this month the government has deducted money from our pay towards the NHIF’s new medical scheme. We want to warn the fund that they should stop any further deductions because if they do we shall withdraw our services from July 1,” Mr Odege said.
He said that money targeted by the NHIF was too much yet only so little was expected from the fund due to its previous scandalous records.
“We have already warned Mr Kirgotty that we shall withdraw from the current medical scheme for civil servants and members of the Armed Forces if he doesn’t stop this thing,” said Mr Odege.

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