Kenyans and employers risk hefty fines in new Ruto’s NHIF bill
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The new NHIF bill seeking radical amendments in health insurance proposes hefty fines to Kenyans and Employers who violate the act
The new NHIF bill seeking radical amendments in health insurance proposes hefty fines to Kenyans and Employers who violate the act.
If the Social Health Insurance Bill put forth by President William Ruto’s administration is passed, employers will be subject to fines totaling millions for various violations.
The National Assembly Majority Leader Kimani Ichung’wah introduced a bill in parliament that calls for a Ksh1 million penalties for employers who fail to pay their employees’ contribution to the Fund on time.
Employers who excessively deduct from their employees’ salaries, will also be subject to a Ksh1 million fine.
Additionally, if found guilty of crimes including improper administration of employee deductions, employers may be sentenced to up to 3 years in prison.
On the other hand, Kenyans who impersonate others to receive monetary benefits will be fined Ksh1 million or face 1 year in prison.
“For the purpose of obtaining any benefit for himself or herself or for any other person knowingly makes any false statement or representation, or produces or furnishes, or causes to be produced or furnished, any document or information which he or she knows to be false in any material particular commits an offence,” the Bill proposes.
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In addition to employers, hospitals will also be subject to hefty fines for violations including fabricating claims to maximize their fund reimbursement.
The Bill proposes a Ksh500,000 fine for instances where health facilities manipulate documents to obtain payments from the Fund.
In addition, the sanctions can result in removal from and suspension from the Fund’s programs.
On the other hand, Kenyans who use identity fraud to obtain financial gains would face a Ksh1 million fine or, a year in jail.
Government officials convicted of misappropriation of the fund will also face hefty fines amounting to Ksh10 million.
“A person who misappropriates any of the funds or assets of the Fund, or assists or causes any person to misappropriate or apply funds, otherwise than in the manner provided in the Act, commits an offence and shall upon conviction, be liable to imprisonment for a term not exceeding five years or to a fine not exceeding Ksh10 million or to both,” read the Bill in part.
The NHIF bill, which aims to reform the health sector, is now in its second reading stage and is slated for debate in the forthcoming days as MPs put forth proposed amendments to it.
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