This archive report was first published on 30 June 2021.
On June 30, 2021, the National Assembly Health Committee heard concerns from various stakeholders regarding the proposed National Health Insurance Fund (NHIF) Amendment Bill, 2021.
The Bill, introduced by National Assembly Majority Leader Amos Kimunya, aims to make it mandatory for adult Kenyans to contribute Sh6,000 annually to NHIF, with employers required to match employees' contributions.
However, stakeholders, including the Federation of Kenya Employers (FKE) and the Central Organisation of Trade Unions (Cotu), have rejected the proposals, citing concerns over the feasibility and potential impact on employment.
FKE Executive Director Jacqueline Mugo argued that the proposal is only feasible in a country with a majority of citizens in formal employment, as in Kenya, almost 85% of persons in wage employment are in the informal sector.
Ms Mugo also expressed concerns that the proposal assumes employers do not provide medical insurance for their employees, stating that most employers operate private medical insurance schemes.
She warned that making it mandatory for employers to match employees' contributions would lead to unnecessary increases in the cost of labour, destroy the private health insurance industry, and negatively impact Kenya's business operating environment.
Cotu Secretary-General Francis Atwoli also opposed the amendments, suggesting that Universal Healthcare be executed through a body managed and constituted outside the NHIF management structure.
Mr Atwoli urged the government to develop an independent scheme for affordable healthcare for all Kenyans, separate from the NHIF, and proposed a different management system and board answerable directly to the Treasury.
Britam Insurance also opposed the clause requiring employers to match employees' contributions, citing concerns over the potential impact on employment and the insurance industry.
However, the Kenya Medical Practitioners, Pharmacists and Dentists Union (KMPDU) commended the government's move to include Universal Healthcare under the NHIF Act, stating that it would make Kenyans realise their right to healthcare as per the Constitution of Kenya 2010.
