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NHIF Faces Huge Losses as Half of Registered Members Fail to Pay Contributions

N

Nyakundi Report

Newsroom 2 min read

This archive report was first published on 6 July 2021.

July 5, 2021, marked a significant event at Windsor, Kiambu, where ICT CS Joe Mucheru, NHIF chair Lewis Nguyai, and NHIF CEO Peter Kamunyo came together to address the challenges facing the National Hospital Insurance Fund (NHIF).

The NHIF is currently facing huge losses due to dormant accounts, with almost half of the registered members failing to remit their monthly contributions to the kitty. This has resulted in a significant drain on the scheme, with NHIF Chairman Lewis Nguyai noting that for every shilling received by a member, the insurer pays Sh2 per claim.

“People should know that having an NHIF card will come in handy someday. It’s just Sh500 per month and Sh17 per day, and the benefits are massive,” he said, emphasizing the importance of contributing to the scheme.

Despite the challenges, the NHIF has made significant strides in recent years, with the scheme having registered 10.4 million families representing 24 million Kenyans. However, only 5.1 million families are active, leaving a significant gap in contributions.

Nguyai urged the public to fund the remaining 4.1 million members who are unable to contribute the monthly charges, with the State catering for the first one million members. The NHIF plans to roll out mass biometric registration that will run concurrently with the electronic claims system, with hospitals having up to July 11 to switch to the new system.

Unfortunately, the NHIF has also seen a rise in fraudulent cases, with 19 reported cases this year. Nguyai emphasized the need for members to be vigilant and report any suspicious activity to prevent further losses.

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