Kenyans could soon begin paying 2.7 per cent of their gross salary to the National Health Insurance Fund (NHIF) should the proposed 2023 regulations pass.
In the proposed National Health Insurance Fund Regulations, 2023, President William Ruto's government seeks to have Kenyans who earn more, increase their contributions to national insurance.
Here is a breakdown of the current vs the proposed charges.
Why It Matters
If the proposals sail through, Kenyans - especially those who earn above Ksh35,000 - will see their contributions increase based on their income. Simply put, the more you earn the more you pay.
The new charges will also be in addition to the proposed 3 per cent Housing Fund deduction which has been proposed in the Finance Bill 2023.
What Experts Say
Speaking to Kenyans.co.ke, Edward Owino, a health financing expert with over a decade of experience in the field, opined that the proposals were not sustainable.
Owino wondered why the government was planning on having Kenyans pay more for the services yet many health facilities were still struggling in offering quality healthcare services.
He cited instances where Kenyans could not get medicine in hospitals and were turned away from facilities across the country.
The certified accountant with a master’s degree in health economics also acknowledged that a number of private companies had special health insurance programmes for their employees.
"Why would the government force you to pay more? You find that someone will part way with Ksh25,000 yearly, yet they will not even use NHIF.
"Kenya is a free market and people need to be given the option of whether they want to contribute or not," he expressed.
What Doctors Have Said
The Kenya Medical Practitioners Pharmacists and Dentists Union (KMPDU), through Secretary General Davji Atellah, opposed the new rates expounding that many salaried Kenyans were already struggling to make ends meet.
"Civil servants' medical allowance was removed from payslip to cover NHIF comprehensive services. And now without a medical allowance or salary increases.
"We cannot subject ourselves to extractive action on workers' payslips," he stated.
Govt's Stand
President William Ruto has defended the new proposals on numerous occasions. According to the Head of State, the new deductions will see a majority of Kenyans who are not employed pay Ksh300 and also help the national insurer achieve Universal Health Coverage (UHC).
“Everyone one of us is going to contribute 2.7 per cent of their earning to NHIF so that we can carry this load of health equally,
"It does not make sense that the president pays Ksh1,700 every month and the common citizen pays Ksh600 to have NHIF. My salary is Ksh1 million and the bodaboda earns Ksh700," he stated.
Way Forward
Owino suggested that the government needed to focus on improving the quality of services in hospitals. He also added that the government needed to focus on reforms instituted by past administrations before making further changes.
"NHIF was actually moving in the right direction, the more you make changes, the more you confuse them. Paying more contribution is not a guarantee that you will find qualified professionals and medicine in the hospitals," he opined.
Meanwhile, NHIF is yet to set dates for public participation.
