Teachers in a huge blow over Ksh53 billion contract
Teachers in a huge blow to cancel Ksh53 billion contract with a medical insurance firm-Minet Kenya Insurance Brokers Limited
Teachers in a huge blow to cancel Ksh53 billion contract with a medical insurance firm-Minet Kenya Insurance Brokers Limited.
A petition from 12 teachers petitioning the Teachers Service Commission (TSC) to terminate its agreement with a health insurance provider has been rejected by the TSC.
The appeal was submitted following the contract renewal on Tuesday, December 1, according to Julius Olayo, director of human resource management and development at TSC.
Olayo said that the petition was unrelated to the court’s purview and that the petitioners need to have sought remedies from the Procurement Review Board.
“To the extent that the petition to quash the execution of the contract between TSC and the insurance firm and a declaration that the procurement process was opaque is not only overtaken by events, but also outside the court’s jurisdiction,” argued Olayo.
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TSC has a contract with Minet Kenya Insurance Brokers Limited to provide health insurance to over 341,000 teachers on the TSC payroll
The new contract is worth Ksh53.3 billion, up from the previous one, which was worth Ksh27 billion, and was set to provide health insurance to over 341,000 teachers on the TSC payroll and thousands of others the commission plans to hire.
In the first year, TSC will give the insurance company Ksh14.9 billion, according to Olayo. In the second tranche, Ksh17.9 billion would be wired to the insurance, and Ksh20.6 billion would follow.
The petitioners stated that while the insurance company received billions of dollars to offer services, they were obliged to pay for their own medical care.
They claimed that they had to text the insurance company for identification before receiving medication, and they requested the court to order the corporation to give them smart cards.
TSC, however, claimed that it was unable to fully support the program with premium payments as required by the Insurance Act due to budgetary allocations from the National Assembly for medical coverage.
As a result, the allocated funds were directed toward the delivery of essential medical services rather than the possible cost-involved purchase of smart cards.
Olayo claims that the smart card’s main function is to make it easier for members to be identified.
Through its general manager, the insurance firm opposed the cancellation of the contract, stating that under the former agreement, it experienced problems verifying and identifying the patients through the message sent.
“There were over one million lives covered under the scheme, and there may have been some challenges under the previous contract,” the general manager asserted.
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