Kenyans will not be mandated to remit monthly contributions for the National Hospital Insurance Fund (NHIF) cover after parliament shot down the NHIF Amendment Bill (2021) on Monday, August 16.
The National Assembly Committee on Health rejected proposals by the state-backed bill, which wanted to make it compulsory for every Kenyan above 18 years to contribute to NHIF.
The committee challenged the practicality of the proposed mandatory contributions, stating that they are not workable.
Despite the bill reducing the minimum contribution for Kenyans in the informal sector to Ksh300, the committee argued that a large number of Kenyans remained unemployed.
“All persons aged 18 years and above to mandatorily contribute is not feasible," the committee stated.
Instead, it suggested that the national and county governments foot the bills for the 5.1 million poor households across the 47 counties.
In addition, the committee rejected the proposal to compel business owners to match workers' contributions, explaining that it would limit the capacity of employees to offer private health insurance for their employees.
The committee further stated that the move would undermine their ability to create new jobs.
In the proposed bill, NHIF membership would be a requirement just like the Kenya Revenue Authority Personal Identification Number (PIN), and Kenyans without proof of the same would be denied access to government services.
They would also risk losing business and tenders as they would be barred from supplying goods and services to the State.
In June, President Uhuru Kenyatta asked MPs to back the bill in a bid to solidify his plan to have affordable healthcare.
The committee’s recommendations have been tabled before the House for debate.
