BY MWANAHABARI REPORTER
Kenyans will from January 1, 2022, pay reduced rates towards their monthly contributions to the National Hospital Insurance Fund.
The voluntary contributors from informal sector will continue to pay Sh500 a month.
The move will see employed Kenyans who have been paying Ksh1,700 per month enjoy a 15 per cent relief – which means they will now pay Ksh1.445 per month – saving some Sh255 per month.
The relief will see the government lose some Sh8.55 billion every year following amendments to the law passed in July through the Finance Act, 2021.
The relief will see employees who pay a maximum of Sh1,700 per month get back Sh255 following amendments to the law passed in July through the Finance Act, 2021.
“The relief is bound to encourage more NHIF remittances and simultaneously aid the government in attaining its Universal Health Coverage (‘UHC) agenda,” audit firm Deloitte said in its review of the changes.
Mwanahabari understands that the relief is meant to encourage Kenyans to register for NHIF – and begin submitting monthly contributions towards the national insurer.
Voluntary contributors who are drawn from the informal sector pay Sh500 a month.
The State-backed insurer collected Sh52.04 billion in the year to June meaning that it will lose up to Sh8.55 billion under the changes.
In September 2021, MPs approved changes to the NHIF Act, which made it compulsory for every Kenyan above 18 years to contribute to the fund.
The government-backed National Hospital Insurance Fund (Amendment) Bill would see all adults compelled to pay Sh500 monthly or Sh6,000 annually in a remodelled Universal Health Coverage (UHC) scheme for outpatient and inpatient services, including maternity, dialysis, cancer treatment and surgery.
The MPs, however, rejected the National Assembly Committee on Health amendments, to have the national and county governments pay bills for the 5.1 million poor households.
Meanwhile, NHIF paid out Sh54.6 billion or 88.7 percent as claims to hospitals in the year ended June 2021.
It has also emerged that NHIF loses Sh16 billion to fraudulent claims every year.