'2.75% is not an increase,' NHIF Chairman Michael Kamau says on proposed new rates

National Hospital Insurance Fund (NHIF) board chairman Michael Kamau says the proposal to increase monthly contributions to 2.75 per cent is meant to achieve equity in consolidating contributions to the health fund.

Speaking on Citizen TV’s Monday Report show, Eng. Kamau said the low-income earners have been carrying the burden of the contributions to NHIF hence the need to create a level playing field.

“The rule of average… 2.75 per cent is not an increase. Tell anybody paid less than Ksh.35,000 to bring their payslip and you will find out that some of them were paying up to 5 per cent of their salary. So there was no equity,” said Kamau.

“Anyone earning Ksh.100,000 and above was paying Ksh.1,700. On average there are 385,000 people on our database who were paying Ksh.1,700 and that works out to an average of 1.12 per cent of their salary. So those people were being carried by the low-income earners.”

The NHIF Chairman added: “Therefore, how do you create equity? The only way you can create equity is to bring in a percentage. So when we worked out all the averages then the average rate comes to 2.75 per cent and it actually reduced what the people below Ksh.35,000 were paying.”

In his quest to actualize the Universal Health Coverage agenda, President William Ruto is now seeking to compel salaried workers to pay 2.75 per cent of their gross monthly income to the health scheme with those who are self-employed be compelled to remit 2.75 per cent of their declared or assessed gross monthly income.

However, the proposals contained in the NHIF regulations 2023 state that where a contributor in self-employment declares less than Ksh.300 of their monthly income, then they shall pay a sum of Ksh.300 to the fund.

A section of Kenyans have endorsed the proposal which they say will enhance health services.

The proposal however dealt a blow to unemployed Kenyans, who will be required to pay Ksh.1,000 to the fund up from the current Ksh.500 to access health services.

In the proposed regulations, the national government shall pay a sum of Ksh.13,300 on behalf of any person listed as indigent or vulnerable by the State Department of Social Protection.

Despite the mixed reactions, Kenyans have called on the president to sort out the mess at NHIF and assure them of proper management of the funds.