Why Some Jobless Kenyans Are Willing to Pay Ksh1,000 Per Month for NHIF Reforms

The National Health Insurance Fund (NHIF) is still undergoing revisions under President William Ruto’s administration, and many jobless Kenyans would now pay Ksh1,000 per month under new plans.

The National Health Insurance Fund Regulations 2023 seek to increase coverage for uninsured Kenyans and improve the standard of healthcare for Kenyans. The recommendations also seek to increase NHIF’s effectiveness and independence.

Three categories—jobless Kenyans, unemployed and vulnerable Kenyans, and employed Kenyans—are proposed for the monthly contributions.

Kenyans without jobs

If it is found that Kenyans who are unemployed are not vulnerable and can make the contributions on their own, they will contribute Ksh1,000 per month.

The NHIF suggests that contributors who are not employed or who are designated as being impoverished or vulnerable pay a monthly contribution of Ksh1,000.

Kenyans in Need and the Unemployed

On the other hand, the government will fully support Kenyans without jobs who are deemed vulnerable.

The board must receive a list of the needy and vulnerable people for whom the national government is responsible as a contributor from the state agency in charge of social protection.

The plans stated, in part, “The amount payable by the National Government on behalf of indigent and vulnerable persons shall be Ksh13,300.”

Kenyans who are employed and self-employed

Kenyans working in the legal and unofficial sectors of the economy will contribute 2.75 percent of their gross earnings to the national fund.

While some Kenyans will experience relief as their monthly deductions are reduced, individuals who make more than Ksh35,000 will experience an increase in their monthly payments.

Contributions for Kenyans who are self-employed and whose 2.75 percent of gross income is less than Sh300 would be set at Sh300.

The proposals stated, in part, that “the NHIF board may require the contributor to avail such evidence and documentation as the board may consider necessary in determining the income upon which a contribution is applicable.”

According to the suggestions, all payments must be made to the Fund by the ninth day of the month, and any contributions made beyond that date will be subject to a fine that the board will determine.

The rules are ready for public comment in the upcoming months.

Strike Back

A number of labor unions, including the Kenya Medical Practitioners, Pharmacists, and Dentists Union (KMPDU), have voiced resistance to the legislation, arguing that deductions will burden many Kenyans.

Then, KMPDU Secretary General Davji Atellah said, “We cannot subject ourselves to extractive action on workers’ payslips.

Ruto explained that many Kenyans who lack health insurance and are trying to make ends meet will benefit from the reforms.

“It is absurd that the president pays Ksh1,700 per month for NHIF while the average Kenyan only pays Ksh600. My annual income is Ksh1 million, while the boda boda makes Ksh700, according to Ruto.

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