Nyong'o: Push to effect new NHIF rates on

Medical Services minister Anyang' Nyong'o during the inauguration of the National Hospital Insurance Fund (NHIF) Board of management September 27, 2012. Prof Nyong'o said the government would push ahead with plans to effect enhanced NHIF rates.

What you need to know:

  • Minister says if the move does not succeed, government to increase cost-sharing charges in public hospitals.

The new National Hospital Insurance Fund (NHIF) board was inaugurated Thursday as the government vowed to push ahead with plans to effect enhanced rates.

Medical Services minister Anyang Nyong’o said if the move does not succeed, the only other alternative the government has is to increase cost-sharing charges in public hospitals.

"We either increase cost-sharing or implement social health insurance which is a softer thing to do,” Prof Nyong’o said.

Lady Justice Linet Ndolo granted orders stopping the NHIF board from effecting the increased contribution rates pending the hearing and determination of a petition.

Rope in unemployed

The NHIF had begun campaigns to rope in the unemployed and those in the informal sector.

The poorest Kenyans are been expected to pay Sh300 a month, while those in formal employment and earning less than Sh600 are supposed to pay Sh150 under the new plan.

Presently, the lowest contribution is Sh30 a month, while the highest is Sh320. But NHIF wants employees earning over Sh100,000 a month to pay Sh2,000, a 600 per cent increase from the current Sh320.

The new NHIF board includes Simon ole Kirgotty, as the acting chief executive, permanent secretaries Mary Ngari (Medical Services), Joseph Kinyua (Finance), Titus Ndambuki (Public Service), Director of Medical Services Francis Kimani, Knut representative Wilson Sossion and Faith-based health providers representatives Rt Rev Michael Sande.

Others are: Kenya Medical Association chairman Dr Elly Nyaim Opot, NGO Council representative Beatrice Kamamia, Cotu secretary-general Francis Atwoli, Federation of Kenya Employers representative Gilda Odera and Tom Gichuki of the Association of Kenya Insurers.

Prof Nyong’o said the Fund’s chairman will be named in due course.

"We have a new NHIF board from today. The board holds the future of Kenyans in its hands. I appeal to you the new board and management, let us pull up our socks.

"We want the past lethargy of NHIF to be buried. Accountability and trust must remain the focus of this board,” Prof Nyong’o said.

The new board replaces a caretaker one appointed by President Kibaki in May following the scandal involving the implementation of a Sh4.3 billion medical scheme for civil servants.

Restore order

On Thursday, Prof Nyong’o said Mr Kirgotty’s team has an uphill task of restoring order at the NHIF and fulfill Kenyans' right of attaining affordable, quality healthcare through transformation of the Fund into a social health insurance body, and enrolment of more Kenyans.

“Most of our people cannot afford medical insurance from private firms. That is why our forefathers had the foresight of starting NHIF in 1963.

"If you check Parliament’s Hansard, former Cabinet ministers Tom Mboya, Joseph Otiende and James Nyagah rooted for a social health insurance and you will be surprised why in 2012 some people are opposing it,” Prof Nyong’o said.

Prof Nyong’o said the country has no choice but to establish a social health insurance for all Kenyans to reduce mortality rate, HIV and Aids prevalence and improve health care.

"We really have to be innovative. We have to confront some of our problems. NHIF has a key role to play. Unless decisive steps are taken, advances in medical care will continue to benefit the privileged few alone,” he said.

Prof Nyong’o said the country needs to inject Sh85 billion annually in health care in the next five years to catch up with lost time “and the only way to raise the resources is through social health insurance instead of just relying on Treasury".

He said although 26 percent of Kenyans are currently covered by NHIF, the figure should be increased to 100 percent like in Rwanda and other countries.

“Lets do away with petty disagreements in building our nation. Unless you have an alternative, don’t oppose. If they say Kenya is poor what about in 1963 when our forefathers started NHIF,” Prof Nyong’o said.

He said the NHIF rates and cost-sharing charges have not been increased for the last 20 years, making public hospitals pile up debts.

Prof Nyong’o also called for the automation of NHIF services to avoid inaccuracies.

He said investigative agencies were still preparing reports on alleged scandals at NHIF “so that the truth could be known as some were mere allegations".

“We want to correct these things by proper auditing and not by speculation."

Mr Opot said the Constitution gives the right to quality health for every Kenyan.

He said NHIF should undergo reforms “to allow it move forward and develop the country".