Kibaki steers clear of new NHIF rates debate

President Kibaki has avoided wading into the controversy surrounding the implementation of new National Hospital Insurance Fund rates and instead urged Kenyans to embrace thinking in the modern world.

Central Organisation of Trade Union (Cotu) secretary general Francis Atwoli had called on President Kibaki to intervene and stop the deductions of new rates “otherwise workers money will turn against them in 2012".

Although the issue is still in court, Mr Atwoli told a conference, on Thursday, attended by President Kibaki at Kenyatta International Conference Centre that NHIF has no capacity to manage the Sh31.1 billion it is to get from workers, it had no structure and that its core mandate was to its members.

Mr Atwoli also criticised Medical Services minister Anyang’ Nyong’o, who is pushing for the implementation of new rates, saying “he is not a true professor and is arrogant".

Federation of Kenya Employers (FKE) executive director Jackline Mugo also said workers and employers needed to be consulted on the benefits of the scheme as it “raises more questions than answers".

She said the fund is contributory and that it is false for its proponents to say all Kenyans will benefit.

“I believe it is not a good idea,” Ms Mugo said.

Labour and Human Resource Development minister John Munyes also called for status quo as he holds talks with Prof Nyong’o, COTU and FKE on the matter.

“FKE has a point. We will call a meeting any time. As we try to respect labour laws, we should take in mind that the country needs some calm,” Mr Munyes said and asked Mr Atwoli to call off a planned strike over introduction of the new charges.

The revised rates will see Kenyans, who earn more than Sh100,000 part with Sh2,000 monthly, while those getting less than Sh5,999 will be charged Sh150.

The highest premium is currently Sh320 per month, while the lowest stands at Sh30.

Self employed workers will pay Sh500 a month.

The scheme -- which will benefit workers who cannot afford health insurance but who earn an income that enables them to pay the minimum prescribed rates -- will offer unlimited outpatient and inpatient cover, including for chronic diseases such as cancer and Aids.

On Friday, Cotu obtained a court order stopping NHIF from going ahead with the deductions until their case is heard and determined.

The case will come up for mention on November 24.

After praising President Kibaki’s development record, Mr Atwoli said workers might be forced to demand that the Othaya MP runs for third term in office if there was no competent leader to succeed him.

“We can use force, the constitution or the provided for laws in peaceful manner,” Mr Atwoli said.

But in his address to the conference on conflict prevention, management and resource resolution in Africa, President Kibaki in an apparent reference to the row said the country belongs to Kenyans and that they need to think in a modern way.

He said unlike old trade unions which only challenged on issues of money and income “those of today should be thinking of how to develop the economy and the means".

“Within Africa, we are already changing the situation and are thinking how to grow,” he said and rubbished some of earlier statements at the meeting as part of history.

“History has passed and will not be repeated. What we want to repeat is our efforts to improve what has happened together, not as groups,” he said.

He said that Kenyans and the government financed its projects and those against such lived in the 19th century.

“We can do much better. The FKE representative spoke unless you are not honest. She spoke facts very well. The rest you have all heard,” he said.

The President called on trade unions to help resolve conflicts in the continent.

Between 1980 and 1990, he said, there were 30 to 40 armed conflicts world wide, 23 of them in Africa.

The conflicts, he said, cost US$ 300 billion between 1990 and 2005 , equal to the amount received as international aid during same period.

On average, he said, war shrinks Africa’s economy by 15 percent a year and subjects millions to severe suffering.

He said a lot needs to be done to complement African Union efforts to combat conflicts through its forces.

“Trade unions have a lot to offer in conflict management as they are mass based organisations transcending religion, economic and social privileges. We need to develop effective strategy of conflict prevention, management and resolution,” he said.

The President urged FKE to work closely with Cotu to ensure industrial harmony.

He also hailed Cotu’s role in ending 2007 post election violence, sensitising Kenyans on implementation of Agenda IV and its role in the attainment of a new Constitution.

The President expressed confidence that the government will overcome any challenges facing implementation of the new law.

Ms Mugo said 800 cases of conflicts were filed in industrial courts between January and June alone and that innovative ways were needed to resolve them.

She gave an example of South Africa, which she said has an alternative dispute resolution mechanism.

She said the new labour laws were good but some areas need to be reviewed.

Ms Mugo said the right to picket enshrined in the new Constitution should be exercised responsibly for peace at work places.

Mr Atwoli praised President Kibaki for championing the new Constitution, infrastructure development, free primary education, expanding democratic space and improving the economy.

The conference was also addressed by the deputy General Secretary of Organisation of African Trade Unions Unity, Michael Besha who called on trade unions to deal with wider conflicts "because workers are effective".

He said the unions have a role to play in the continent's prevention and management of conflicts.