The National Health Insurance Fund (NHIF) Board Chairperson Michael Kamau has maintained that the new changes to split the Fund into three were informed by the government's plan to successfully implement the Universal Health Coverage (UHC).
Speaking to the media on Thursday, Kamau explained that the government was not doing away with NHIF but building systems to address the challenges that were facing the Fund.
In the new proposals by President William Ruto's Cabinet, NHIF will be split into the Primary Healthcare Fund, Social Health Insurance Fund and Emergency, Chronic and Critical Illness Fund.
Kamau explained that the new proposals ratified by the Cabinet on Tuesday, August 29, will see contributions to the Social Insurance Fund mandatory for all Kenyans.
He indicated that the current NHIF model, Kenyans only voluntarily contributed to the fund, a move that has seen many Kenyans missing out on insurance coverage.
The chairperson also expressed that the high cost of treating chronic diseases also informed the move by Ruto's cabinet to give a nod to the changes.
"NHIF was only involved in curing. The prevention system was not strong enough, and that is why we have the Primary Healthcare Fund and Social Health Fund, which is compulsory.
"With the recognition that we have critical illnesses that are draining the resources from NHIF and the fund, the government has decided that they are going to set up a critical illness fund that will not be eating to the Social Health Fund," he stated.
Kamau detailed that various bills proposing the changes would be made public in due course, adding that they were currently in the hands of Health CS Susan Nakhumicha.
"We are building a capacity, and NHIF should be able to transition," he added, adding that the CS was better placed to clarify the changes, including the funding model.
Kamau, a former Transport Cabinet Secretary, spoke at the NHIF-EACC Fraud Prevention Audit launch at the Fund's head offices in Upper Hill, Nairobi. EACC, for 45 days, will analyse NHIF systems to find loopholes that enhance graft and offer recommendations on how to better service delivery.
The new three funds will be anchored by the proposed Primary Health Care Bill of 2023, the Digital Health Bill of 2023, the Facility Improvement Financing Bill of 2023 and the Social Health Insurance Bill of 2023.
Since assuming office, Ruto has hinted at reforming the fund, which he asserts should cover the healthcare of all households. The President has also proposed a new deduction model that will see Kenya's top earners paying more to the fund.
The National Health Insurance Fund Regulations 2023 proposed that all employed Kenyans contribute 2.75 per cent of their gross salaries monthly. Currently, employee deductions are determined depending on the salary scale.
"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," Ruto stated at a rally in May.
