Consumer lobby terms new NHIF rates 'wasteful'
What you need to know:
- Cofek calls for the review of the NHIF Act so that the Fund is only restricted to developing policy.
A consumer lobby group has added to the controversy surrounding the new NHIF rates by terming the enhanced contributions "wasteful".
The Consumer Federation of Kenya (Cofek) on Wednesday joined the Federation of Kenya Employers (FKE) and the Central Organisation of Trade Unions (Cotu) in criticising the new rates, announced last week by Medical Services Minister Anyang’ Nyong’o, arguing that the quality of service at the insurance agency has not improved.
“While we are awake to the fact that the public medical scheme will only improve with additional resources, we are concerned that the minister’s announcement did not pay the requisite attention to improving the NHIF service quality,” Cofek secretary general Stephen Mutoro said in a statement.
Cofek, like FKE, demanded that NHIF sorts out its integrity issues arising from allegations of misuse of funds and low levels of public confidence before asking for more contributions.
“NHIF must be seen to be a devolved entity and one which embraces the various national values such as public participation which, in its present form, has been reduced to the Medical Services Minister.”
Last week, Prof Nyong’o announced increased deductions payable to the Fund to start on October 1. Under the rates, the lowest paid worker earning Sh6, 000 will contribute Sh150 while the highest paid employee earning Sh100, 000 and above will part with Sh2, 000 per month.
Self-employed and volunteers will contribute Sh500 and Sh300 respectively.
Prof Nyong’o argued the rates are lower than what the International Finance Corporation had initially suggested for the country in 2010.
But he was immediately met with opposition from bother workers and employers organisations. Cotu threatened to call a national strike, terming the new rates mischievous while FKE accused the minister of announcing the rates without consulting them.
On Wednesday, Cofek opposed the idea of going on strike but instead called for the review of the NHIF Act so that the Fund is only restricted to developing policies on medical insurance while operations are managed by county administrations.
