Strike called off as NHIF rates halted

Unions have called off the planned national strike after the government shelved plans to increase medical insurance contributions.

Labour minister John Munyes announced the suspension after meeting Prof Anyang’ Nyong’o, the Medical Services minister, whose ministry is in charge of the scandal-ridden National Hospital Insurance Fund.

Others who attended the meeting were Central Organisation of Trade Unions (Cotu) secretary-general Francis Atwoli and Federation of Kenya Employers (FKE) chief executive officer Jacqueline Mugo.

Following the meeting, Cotu called off the workers’ strike that was expected to start on May 14 in protest against the new rates.

Mr Munyes announced that the new NHIF rates would remain suspended for three months to enable the caretaker committee appointed by Prime Minister Raila Odinga to run the fund’s affairs and compile its report.

“At a meeting held on 8th May, 2012, at the Ministry of Labour headquarters, which was presided over by the minister of Labour and attended by the minister of Medical Services, Cotu and FKE, the parties agreed as follows:

That the intended strike is suspended forthwith, that the implementation of the new NHIF rates be deferred for three months pending a report of the new NHIF caretaker committee in consultation with social partners,” Mr Munyes told a Press conference.

He said he had revoked the gazette notice that had effected the new rates to pave the way for further consultations.

Withdrawn unconditionally

According to the new rates, workers earning less than Sh6,000 per month were to contribute Sh150. Those earning above Sh50,000 were to pay Sh1,000. Employees with a regular income of Sh100,000 and above would pay Sh2,000.

Cotu had said that employees would boycott work from May 14 if the revised premiums were not withdrawn unconditionally.

“Unfortunately, there are employers who deducted the money from their employees. The deductions ought to have started in June but NHIF had sent an earlier communication that talked about deductions being effected on April salaries, so on the basis of this, some employers effected the deductions,” Ms Mugo told the Nation. She appealed to NHIF to refund such employees.

The suspension came as the Kenya Union of Post-Primary Education Teachers asked the Teachers Service Commission not to effect the new rates.

On Monday, Mr Odinga suspended the NHIF board and ordered a forensic audit into the management of the health insurer. (READ: Cotu gives strike notice over new NHIF rates)