Court suspends Kenya's new medical cover

The new National Hospital Insurance Fund (NHIF) rates that were to come into effect on September 1 have been suspended, albeit temporarily.

In a ruling, Industrial Court judge James Rika said the suspension would last up to September 10, when a case filed by the Central Organisation Trade Unions (Cotu), will be heard.

The suspension was made after the court threw out an application by NHIF that sought the dismissal of Cotu’s case on grounds that the Industrial Court had no jurisdiction to hear the matter.

In the ruling, Justice Rika said the Industrial Court had exclusive mandate to administer the Employment Act of 2007, the Labour Relations Act of 2007 and the Labour Institutions Act 2007.

“We are persuaded the dispute filed herein involves employment issues falling under the Employment Act of 2007,” said the court.

Cotu moved to court seeking the suspension of the rates to allow for consultation. The judge said it was therefore alright for the court to seize the matter and intervene if any of the tripartite partners had not lived up to its obligations.

In moving to court, Cotu accused NHIF of revising the rates without consulting its partners. The new rates were published on July 2 in a Kenya Gazette notice.

“We wish to advise employers and contributors that the rates take effect from September 1 to enable provision of outpatient care services from October 1,” read the notice.

The new rules are pegged on one's monthly income and not a flat rate of Sh320 for all workers as was the case before.

Those earning above Sh100,000 a month will pay Sh2,000. the case will now proceed to full hearing beginning September 10.