Ruto drops cap on NHIF contributions exposing workers to higher deductions
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All salaried workers will contribute 2.75 percent of monthly earnings to fund healthcare through NHIF after Ruto adminstration proposed removal of KSh5000
All salaried workers will contribute 2.75 percent of monthly earnings to fund healthcare through NHIF after Ruto adminstration proposed removal of KSh5000 cap.
If the proposed laws are approved, each Kenyan household will contribute 2.75 percent of its monthly income toward the establishment of a new social healthcare fund.
The Social Health Insurance Act, 2023, which has been gazetted to phase down the National Health Insurance Fund (NHIF), which has been in place for 57 years, will be implemented with the help of the draft Social Health Insurance (General) Regulations, 2023, which the state has released.
“A household whose income is derived from salaried employment shall pay a monthly statutory deduction contribution to the Social Health Insurance Fund at a rate of 2.75 percent of the gross salary or wage of the household by the ninth day of each month,” reads the draft by Health CS Susan Nakhumicha.
Top incomes’ deductions will increase significantly as a result of the 2.75 percent not being capped at Sh5,000 as many government officials had earlier indicated.
The draft regulations will undergo public participation before the shift from the current deductions of Sh150 to Sh1,700 for salaried workers and Sh500 for self-employed can be effected.
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The present ceiling of Sh1,700 will be eliminated if the draft is implemented in its current form, which will subject high income earners to higher deductions for paying health insurance.
The Social Health Insurance Act 2023 will see NHIF disbanded and a Social Heath Authority created in its place to manage three funds— primary healthcare fund, healthcare fund and emergency, chronic and critical illness fund.
Government has been rolling out universal health coverage (UHC) programme in which it is seeking to provide quality and affordable healthcare for all Kenyans. It has picked Social Health Authority as the primary implementer of UHC.
The new Act has now tied access to government services on one being an active contributor towards social healthcare. It has also put a two percent penalty on any defaulted contributions.
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