According to new regulations published by the National Health Insurance Fund (NHIF), Kenyans earning higher will contribute more to the fund.
If Parliament approves the new regulations, it will be mandatory for all Kenyans to be in the NHIF fund as it seeks to drive revenues to offer insurance to all Kenyans.
Currently, those earning over KSh 100,000 pay a fixed monthly contribution of KSh 1,700, however, with the new model, those earning KSh 200,000 would pay a monthly contribution of KSh 3,400.
Kenyans earning KSh 500,000 will contribute KSh 8,500 per month while informal workers will contribute KSh 500 per month, but membership will be mandatory.
The Federation of Kenya Employers (FKE) has since opposed the new model noting that it would affect the wage bill and weaken the capacity of businesses to create new jobs and sustain the existing ones.
“I do not think that this is right and justifiable, and it will increase the cost of business. Allowances are part of the gross pay and are not fixed and so this means that it will just be too big of a cost to the employers,” Jacqueline Mugo, the chief executive of FKE said.
Other changes proposed by NHIF include the introduction of a biometric system that will contain details of all individuals and enable access to all services.
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The last review initiated by NHIF came in 2015 whereby they increased the amount from Ksh320 to an average of Ksh500 to Ksh1,700.
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