Cotu, NHIF agree on new rates

What you need to know:

  • Cotu Secretary General Francis Atwoli said this will ensure workers are not oppressed by deducting their “meagre” earnings.

  • Mr Atwoli also threatened to sue employers who have defaulted on remitting staff contributions to the fund.

  • Mr Mohamed said membership to the fund has grown tremendously over the last three years from about 3.7 million  in 2013 to 5.9 million currently.

The Central Organisation of Trade Unions (Cotu) and the National Hospital Insurance Fund (NHIF) have finally agreed that contributions to the fund should be pegged on an employee’s basic pay and not gross pay as earlier proposed.

And now, the two said they will lobby MPs through National Assembly’s health committee, to fast track the same amendments in the NHIF Act.

Cotu Secretary General Francis Atwoli said this will ensure workers are not oppressed by deducting their “meagre” earnings.

They have been meeting at the Great Rift Valley Lodge in Naivasha since Tuesday to review the implementation of the national health cover where they also resolved to lobby the government to increase its current contribution to support the poor and the vulnerable.

Mr Atwoli also threatened to sue employers who have defaulted on remitting staff contributions to the fund.

The Cotu boss termed it criminal for an employers to deduct the money from their employees pay and fail to remit the same to the insurance fund.

“Those who have defaulted on employee remittances will end up in court. We have instructed our lawyers to assist NHIF to ensure workers don’t lose a single coin. This is a serious problem and is a criminal offence,” he said.

Also present were NHIF Chief Executive Officer Mr Simeon Kirgotty, fund’s chairman Mr Mohamud Ali Mohamed and representatives of various trade unions.

The parties want the government to review the NHIF Act to cover other Kenyans who are not members of the fund.

They argued that this will enable those who not in  the scheme and are not in a position to make contributions, to access NHIF services.

Mr Atwoli said to realise its goal of providing universal health care, a review of the NHIF Act in necessary to make it mandatory for the government pay contributions for the non members.

“We believe that will be a positive move to ensure disadvantaged Kenyans get good health care,” he said at the end of the two-day meeting. Cotu had opposed the new rates. However, they have agreed to review contributions to between Sh150 and Sh1,700 after which the workers’ union withdrew a pending case.

Currently, formal sector employees’ contributions are deducted and remitted to NHIF by their employers. Members under the voluntary category pay Sh500 per month.

Mr Mohamed said membership to the fund has grown tremendously over the last three years from about 3.7 million  in 2013 to 5.9 million currently.