This archive report was first published on 1 November 2021.
Employees in Kenya are set to benefit from a new law reform that protects them from incurring hospital bills when their employers fail to remit National Hospital Insurance Fund (NHIF) contributions.
On October 26, 2021, the National Hospital Insurance Fund (NHIF) suspended medical cover for workers of Moi University, the University of Nairobi, Egerton University, and the Technical University of Kenya due to their employers' failure to remit NHIF contributions.
According to the NHIF Act of 1998, employers are not currently liable to compensate their workers when their insurance is suspended for non-remittance. However, a recent amendment to the law has changed this, making employers liable to pay the costs incurred by employees when seeking treatment from a contracted healthcare provider during the period when the contribution is due.
Members of Parliament amended the National Hospital Insurance Fund Act, compelling businesses, county government, and State agencies to compensate their workers for paying medical bills out of pocket due to suspension of the NHIF cover.
As a result, employers who fail to remit NHIF contributions will not only be required to compensate their workers but also pay penalties for delayed remission of the NHIF contributions.
According to NHIF chief executive Peter Kamunyo, counties had failed to remit Sh143.27 million to NHIF by the end of last month, despite deducting the cash from the workers' salaries.
With the new law reform, employees will be protected from incurring hospital bills when their employers fail to remit NHIF contributions, and employers will be held accountable for their actions.
