Workers reject new NHIF rates

Workers have opposed a government move to raise rates for a public medical scheme, vowing to go on strike to force the Health ministry to rescind the decision.

Central Organisation of Trade Unions (Cotu) secretary-general Francis Atwoli said in a statement that he reads mischief in the minister’s move to increase the National Hospital Insurance Fund (NHIF) rates. (READ: Kenyans to pay more for healthcare)

“In a weeks’ time, Cotu will be revealing the forces and the motive behind the minister’s obsession and we have proved beyond doubt that the minister is not genuine in his push for the new NHIF rates,” said Mr Atwoli.

He added that the NHIF was in dire need of reforms, particularly in the wake of recent allegations of misappropriation of workers’ money through doubtful and non-existent medical facilities.

According to Cotu, NHIF lacks capacity in terms of management and medical facilities across the country.

“Amid all these shortcomings, the minister still insists that workers effective October 2012 should pump in more funds into the NHIF,” said Mr Atwoli.

The Kenya Electrical Trades and Allied Workers Union (Ketawu) also asked the government to withdraw the directive or face a countrywide strike.

“Let the minister take us seriously on this because after the seven days are over, everything will come to a standstill in every corner of this country as every worker will down tools in solidarity,” warned Ketawu secretary-general Ernest Nadome.

According to the unionist, who was in the company of Dockworkers Union general secretary Simon Sang, there was no justification for the NHIF rates to be raised when it was at the centre of an embezzlement of public funds controversy.

This is the second time the government has announced plans to implement the new rates after the workers’ umbrella body, Cotu, blocked the bid two years ago.

Under the proposed 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.

Those who are self-employed and volunteers will contribute Sh500 and Sh300 respectively.

This notwithstanding, the minister warned that the rates could go even higher if the recommendations by the IFC-World Bank 2010 report is implemented to the letter.

Inflation rates

Mr Sang said that the minister should have consulted them before unilaterally deciding to increase the rates without considering the current inflation rates.

Due to the electioneering mood in the country, he advised the government to shelve these rates until after the next General Election.

“In such situations, it will be proper to exhaustively iron out issues with every stakeholder before compelling workers to contribute to a fund that is being run in an ad hoc manner,” he said.