The National Hospital Insurance Fund (NHIF) has suspended comprehensive medical coverage for Siaya County employees due to an outstanding Sh42 million debt, leaving staff without medical, life, and last expense benefits for the 2021/2022 financial year. A May 31 letter from NHIF CEO Andrew Kutto to county secretary Joseph Ogutu cited the unpaid balance as the reason for the suspension, stating, "The cover has been deactivated pending settlement of this balance."
Ogutu confirmed receiving the notice and attributed the delay to cash flow challenges, vowing to settle the debt by Friday. The county had previously faced scrutiny in August 2022 for failing to remit over Sh400 million in statutory deductions to institutions like NSSF, KRA, and LAPFUND. Investigations revealed unpaid liabilities dating back to 2013, including Sh63.98 million to NHIF and Sh312 million to LAPFUND.
While Ogutu described the current debt as a "last chunk" of outstanding obligations, he emphasized ongoing efforts to resolve the issue, calling NHIF a "partner" in the process. The suspension highlights persistent financial management challenges within the county government, despite monthly salary deductions intended for insurance coverage.
