Court stops NHIF from raising rates

The implementation of the new National Hospital Insurance Fund rates, which was supposed to start on Monday, has been stopped.

Industrial Court judge Linet Ndolo granted orders stopping the NHIF board from effecting the increased contribution rates pending the hearing and determination of a petition.

The Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals and Allied Workers on Tuesday moved to the Industrial Court under a certificate of urgency and obtained the orders stopping the NHIF, Medical Services minister, Labour minister and the Attorney-General from effecting the new rates. (Read: Employers group to fight new NHIF rates)

The case will be mentioned on October 8.

The NHIF had begun campaigns to rope in the unemployed and those in the informal sector.

The poorest Kenyans are been expected to pay Sh300 a month, while those in formal employment and earning less than Sh600 are supposed to pay Sh150 under the new plan.

Currently, the lowest contribution is Sh30 a month, while the highest is Sh320. But NHIF wants employees earning over Sh100,000 per month to pay Sh2,000, a 600 per cent increase from the current Sh320.

Head of marketing and communication at NHIF Bella Omino had earlier said contributors should start visiting their offices from Monday to fill forms or do so online, indicating the facilities where they prefer to get treatment.

Low-level workers

The fund wants a house help who earns the minimum wage of Sh7,586 to voluntarily contribute Sh300. It also wants low-level workers earning the minimum wage of Sh11,995 to contribute Sh400.

The challenge, said Ms Omino, is to rope in the people in the informal sector and the unemployed.

“We are holding discussions with local and community leaders to convince them why it is important for their people to voluntarily join the scheme,” she said.