New health scheme to cater for the retirees

What you need to know:

  • The product christened Afya Akiba was launched by insurance brokerage firm Aon in conjunction with UAP Insurance.
  • Most of the people approaching retirement do not plan wisely for their future leading to desperation in old age, he added.
  • Speaking during the launch, Treasury Cabinet Secretary Henry Rotich said the product is in line with government’s Vision 2030 social protection objective.

Retirees countrywide will benefit from a newly launched post-retirement medical savings scheme.

The product christened Afya Akiba was launched by insurance brokerage firm Aon in conjunction with UAP Insurance.

It targets people of the working age between 18 and 60 in all sectors and aims at encouraging savings so as cater for medical expenses during sun set years.

“It was born out of the realisation that elderly people past the retirement age are not covered by the conventional health and medical insurers despite the fact that they require more medical attention in their old age,” Aon chief operating officer Sammy Muthui said on Tuesday.

“At least 56 per cent of the elderly people depend on others for their health needs. We must get a solution to this if we do not want our elderly to be destitute,” he said.

Mr Muthui said retirees end up gobbling their pension in medical expenses and that the new cover will help during their retirement age. Most of the people approaching retirement do not plan wisely for their future leading to desperation in old age, he added.

Those opting for the scheme will be required to contribute Sh1,000 per month and may decide to pay it quarterly, semi quarterly or annually, explained Mr Muthui.

He said the company would consider introducing a daily savings plan targeting the people working in informal settlements and the jua kali sector.

Speaking during the launch, Treasury Cabinet Secretary Henry Rotich said the product is in line with government’s Vision 2030 social protection objective.

Aon chief executive Joseph Onsando said the savings plan will enable people at the grassroots to understand the importance of health insurance.