The National Hospital Insurance Fund (NHIF) is making potential changes aimed at increasing the net pay to salaried employees.
The changes are in accordance with various taxation laws that took effect on July 1 after the enactment of the Finance Act 2021.
According to the new changes, employees are expected to enjoy 15 percent relief on their NHIF contributions coming January next year.
Currently, individuals make a maximum monthly contribution of Ksh1,700 to the NHIF and will now get a relief of up to Ksh255.
According to Deloitte audit firm, the move aims at motivating more Kenyans to join the state-owned insurance corporation to strengthen efforts to ensure access to universal healthcare in the country.
“The relief is bound to encourage more NHIF remittances and simultaneously aid the government in attaining its Universal Health Care Coverage (UHC) agenda,” Deloitte noted.
The government plans to make NHIF contributions compulsory to all Kenyans above the age of 18 to help realize the goal.
The state-sponsored amendment to the NHIF Act seeks to make it compulsory for all adults to join and make a monthly contribution of Ksh500 or Ksh6,000 annually to the insurance corporation.
The NHIF membership is currently compulsory to all workers in the formal sector with contributions of between Ksh150 to Ksh1,700 depending on their salary.
For workers in the informal sector, it has hitherto been voluntary to join and contribute Ksh500 a month - although the agency has announced plans to have it compulsory for all adults.
The new National Insurance Amendment Bill 2021, seeks to add 16 million more Kenyans to the scheme.
