MPs Approve Bill Making NHIF Mandatory for All Kenyans

The National Assembly has passed a bill that compels all Kenyan adults to enroll with the National Hospital Insurance Fund (NHIF).

The government-sponsored National Hospital Insurance Fund (Amendment) Bill makes it mandatory for each household to make a contribution of Sh500 monthly or Sh6,000 annually to NHIF.

It requires employers to pay an equal contribution to the fund for their employees as the government moves towards attaining universal health coverage (UHC).

“Contributions will be by all Kenyans from 18 years and above in both formal and informal sectors,” the bill reads in part.

Employers who fail to remit to the fund or deduct the same from their employees’ salaries will face heavy penalties.

MPs rejected a proposal by the National Assembly Health Committee to have the national and county governments foot the bills for the 5.1 million poor households.

Employers with workers earning below Sh12,000 will be compelled to top up their employees’ contributions to the NHIF.

Under the existing NHIF rates, employees earning between Sh8,000 and Sh11,999 pay Sh400 monthly. Kenyans employed in the formal sector make a contribution to NHIF based on their salaries with the highest paying Sh1,700

“The base of contribution will be Sh500. But there are employees in the private sector who contribute Sh150 or Sh300. The importance of this amendment is to ensure that the private sector employers simply top up the difference to ensure employees base is Sh500,” National Assembly Majority Leader Amos Kimunya said.