Union wants health deal changed

The Trade Union Congress of Kenya secretary-general Wilson Sossion addresses journalists on January 30, 2015. With him are health fund chairman Mahmud Ali, union chairman Tom Odege (right) and other officials. Two trade unions want the National Hospital Insurance Fund to immediately initiate dialogue with stakeholders over its new rates. PHOTO | SULEIMAN MBATIAH |

What you need to know:

  • Teachers and civil servants also cast doubts on ability of bosses to manage fund.
  • Sossion says contentious issues raised must be addressed before law is gazetted.

Civil servants and teachers have set new demands for the implementation of the proposed National Health Insurance Fund membership contributions.

Through the public workers umbrella union, the Trade Unions Congress of Kenya, civil servants and teachers have told the fund management that their members can afford to contribute to the new fund if it is calculated on a benchmark of 1.5 per cent of basic salary.

They are demanding that the government complements the members’ contribution by remitting double what the public workers pay to the fund.

A meeting called to discuss the new rates hosted by the fund management in Naivasha last week failed to tie up a deal after the trade union centre and the Federation of Kenya Employers stuck to their guns.

Deputy President William Ruto last week announced that the government would gazette the new rates this week to kick-start the implementation of a new universal medical cover for Kenyans.

Trade union congress chairman Tom Odege said issues to do with public trust on the management of public organisations has also led to the reluctance by public workers to embrace the new rates, which would make the fund a Sh40 billion institution in terms of annual returns.

“It might be very difficult to regain the trust of the public. Some of these institutions have been known to plunder public resources and we must be given assurance that managerial issues are tight for us to embrace such an idea,” Mr Odege said.

The trade union centre is also demanding that the law be changed so that Kenyans who want to opt out of the scheme be free to do so.

Further, the congress is also calling for independent management of the fund with a fair composition of the board with reasonable representation of public workers.

ADEQUATELY EQUIPPED

The union’s secretary-general, Wilson Sossion, said public workers were ready to be incorporated into the scheme if it is made workable, agreeable and affordable.

He added that for the fund to benefit the members, service providers must be adequately equipped to deliver without fail.

The congress’ executive director Njeru Kanyamba said the rate proposed by the labour centre was based on findings from other African countries.

“We also have a feeling that there was no initial intention to consult us yet our members are major contributors to this fund,” he said.

Mr Kanyamba said public workers will only accept implementation of the new rates once there is total agreement on everything.

Under the reviewed rates, divided into 10 salary bands, workers earning less than Sh5,999 will contribute Sh150 each month while those earning a gross pay of more than Sh100,000 will contribute Sh2,000 each.

Health fund chief executive Simon ole Kirgotty told the congress and the employers’ officials not to worry, saying that management of the institution and service delivery has improved over the years.