Universities' staff union demands NHIF refunds, threatens strike

From left: Kenya University Staff Union national organising secretary Ernest Wayaya, national chairman Anthony Nyakoni and secretary-general Charles Mukhwaya address the reporters at Chester House, Nairobi, May 27, 2015. PHOTO | JEFF ANGOTE | NATION MEDIA GROUP

What you need to know:

  • Kenya University Staff Union on Wednesday said they would join other unions like Kenya National Union of Teachers and Trade Union of Congress Kenya in calling for a strike in the event the new rates are not revoked.
  • KUSU, through their secretary-general Charles Mukhwaya, also faulted the public health insurer for calculating the deduction on gross pay instead of basic pay, saying the method of calculating was "grossly unprocedural."
  • The new rates, which came into effect at the end of last month, require workers earning Sh5,999 to pay Sh150 which is the lowest deduction and those earning above Sh100,000 to pay Sh1,700.

University staff have asked the National Hospital Insurance Fund to refund the recent deductions, saying they were not consulted.

Kenya University Staff Union on Wednesday said they would join other unions like Kenya National Union of Teachers and Trade Union of Congress Kenya in calling for a strike in the event the new rates are not revoked.

They have given the government an ultimatum of two weeks, failure to which they will continue pursuing the matter in court.

KUSU, through their secretary-general Charles Mukhwaya, also faulted the public health insurer for calculating the deduction on gross pay instead of basic pay, saying the method of calculating was "grossly unprocedural."

Calculating the monthly premium on gross pay, which is higher than basic pay as it is inclusive of allowances, results to a higher premium being paid by the worker.

“The new rates have severely reduced the take-home salary of most university staff; the NHIF board acted in bad faith, pretending to have consulted the stakeholders whereas they had already implemented the new rates,’ said Dr Mukhwaya.

EFFECTED LAST MONTH

The new rates, which came into effect at the end of last month, require workers earning Sh5,999 to pay Sh150 which is the lowest deduction and those earning above Sh100,000 to pay Sh1,700. Those who are self-employed are paying Sh500 up from Sh160 a month.

The rates previously ranged between Sh30 and Sh320 for salaried workers.

Further, the secretary general said that it was paradoxical for government to implement new rates whereas they did not contribute to the scheme.

Dr Mukwaya also questioned the capacity of the hospitals that NHIF published to offer the services saying they lacked the ability to handle the work force.

The NHIF published the list of more than 1,500 public, private and faith-based health service, but Kenya Association of Private Hospitals have disowned the list insisting they had not struck a deal with the public health insurer.

Some of the hospitals listed are Nairobi Hospital, Aga Khan University Hospital and Gertrude's Children's Hospital.

PRUDENT USE OF FUNDS

Dr Mukwaya said that NHIF had not assured Kenyans that they would use the fund prudently and not misappropriate as they did some years back.

“NHIF has been involved in scandalous projects, and if they were corrupt with the little cash we gave them, what about the lots of money they have collected,” asked the secretary-general.

The NHIF has since said it has collected Sh1.5 billion against a target of Sh2.3 billion and that the money is being accumulated as a capitation pool from which hospitals chosen by contributors would be paid.