Hospital fund wins in new charges case

• Judge accuses petitioners seeking to have rates declared illegal of playing games by filing two cases

A judge has declined to stop the new National Hospital Insurance Fund from charging its members higher rates starting from Wednesday.

The applicants challenging the rates — who had filed two cases — were told to decide which case they wanted to pursue to avoid wasting the court’s time.

Mr Kiriro Wa Ngugi and Ms Diana Patel had accused the NHIF board of breaking the law by planning to increase the money it charges members. They said that only Parliament had the powers to approve taxes through specific Bills.

Beginning Wednesday

In her ruling, High Court judge Lady Justice Roselyne Wendoh said the applicants were playing games with the court by filing two cases with similar intentions.

Initially, they filed a case asking the court to quash gazette notices published by the NHIF to announce the new deductions.

When the court declined to give injunction orders, Mr Ngugi and Ms Patel applied for a constitutional case in which they challenged the Act that gives the NHIF board the powers to review rates.

Lady Justice Wendoh, however, said the two cases, though filed in different courts, have the same implications.

“Such cases can result in embarrassment when conflicting judgments are delivered.” she said.

Beginning Wednesday, the NHIF had announced plans to increase minimum deductions from Sh320 to a maximum of Sh2,000 per month.

The new rates would see Kenyans who earn more than Sh100,000 a month fork out Sh2,000 and those who earn Sh5,999 and less pay Sh150. Currently, all workers pay Sh320.

On Monday, the Industrial Court issued orders blocking the new deductions in a case filed by the Central Organisation of Trade Unions.