Talks between employers and unions delay new NHIF rates

Workers have been given more time before they can start paying the new National Hospital Insurance Fund rates.

The proposed deductions have been delayed by ongoing talks between employers and unions, led by the Trade Unions Congress of Kenya (TUC-K).

The unions have said they will only accept the new rates if the monthly deductions are computed based on a percentage rating so that low-income earners are not overburdened.

The new rates will result in a universal health cover for all Kenyans that will transform the fund into a Sh40 billion revenue collector annually.

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 be contributing Sh2,000 each.

Besides the computation, the unions are demanded to be represented in the NHIF board together with a representative from the Union of Kenya Civil Servants.

HELD BACK

NHIF Managing Director Simon ole Kirgotty yesterday said the planned rollout of the new insurance fund had temporarily been held back to pave way for the negotiations to be concluded.

“We will be meeting the ministry this week as we also plan to conclude negotiations with the other stakeholders before we can start the implementation,” Mr Kirgotty told the Nation yesterday.

“Cotu has withdrawn the case it had filed against the fund. However, TUC-K has also demanded that they should be included in the consultations. Then the Federation of Kenya Employers say they must be given time to study the new rates before they can be rolled out,” he said.

Workers will start paying the new rates once the parties agree on the remaining sticking issues.

TUC-K chairman Tom Odege said his group will oppose the new rates unless civil servants are represented on the NHIF board because they are the main actors.

“Civil servants are the main players in the fund at the moment even though a new Act last year excluded us from representation,” said Mr Odege. “As long as the situation remains the same, we will move to court to block implementation of the rates.”

He said the union wants to ensure that the rates are affordable for civil servants.

MONTHLY DEDUCTIONS

“They should calculate monthly deductions based on an individual’s pay. We suggest a mandatory fee of say Sh150 for each member and then two per cent thereof computed based on an individual’s salary,” he said.

The chairman of the Union of Kenya Civil Servants, Mr Noah Rotich, also criticised a medical scheme for civil servants, which was unveiled last week, as inadequate.

He said the air rescue and road ambulance service would work better if it was constituency-based. “Using one ambulance per county is not practical,” said Mr Rotich.

He also warned the government against forcing civil servants to go for pay cuts.

“We are concerned that someone has sent the so-called voluntary pay cut forms to the counties. We will not allow civil servants who are poorly paid to be intimidated by this act. Pay cuts should be restricted to high-income earning State officers only,” said Mr Rotich.