How new changes on NHIF Act will affect you

New changes made by Kenyan legislators on National Hospital Insurance Fund (Amendment) Bill is set to see all adults pay Sh500 monthly or Sh6,000 annually in a remodeled Universal Health Coverage (UHC) scheme for outpatient and inpatient services.

This will include maternity, dialysis, cancer treatment and surgery.

The NHIF board will determine the rate that the unemployed youth will pay to the Fund.

Employers with workers earning less than Sh12, 000 will now be compelled to top up their employees’ contributions to the NHIF.

Currently, workers who earn between Sh8, 000 and Sh11, 999 pay Sh400 monthly, according to NHIF rates.

Formal sector workers contribute to the NHIF based on their salaries with the highest contribution being Sh1, 700

Employers were facing up to Sh1,700 additional monthly statutory deductions per worker under the Bill but Leader of Majority Amos Kimunya lobbied MPs to make changes to have employers top up employees’ contributions instead of matching them.

President Uhuru Kenyatta in June appealed to lawmakers to pass the Bill, which offers his administration the best chance of providing affordable healthcare for all Kenyans.

Employers had petitioned Parliament to reject the proposal in the Bill compelling them to match their workers’ NHIF contributions, saying it will be an added burden as they struggle to recover from the economic fallout of the coronavirus pandemic.

MPs also created three categories and rates payable to NHIF by persons whose income is derived from self-employment.

Statistics show that over 25.36 million Kenyans are aged 18 years and above, meaning the compulsory contributions would have added at least 16.36 million contributors, nearly tripling NHIF membership.