NHIF Monthly Contribution For Individuals Reduced To Ksh 300

Monthly contributions to the National Hospital Insurance Fund (NHIF) by workers in the informal sector will now be reduced from 500 shillings to 300 shillings.

This is part of the proposed changes to the NHIF Amendment Bill 2021 that seeks to make the amount affordable to low-income earners.

Informal workers currently pay 500 shillings in the NHIF monthly contributions. The push for lower rates would cut the State-backed insurer’s efforts to boost income and enhance cover for diseases like cancer.

Initially, informal workers remitted 350 shillings which increased to 500 shillings in a bid to boost the monthly collections.

“The proposed amendment is intended to ensure that many Kenyans particularly persons who are in the informal sector, those not working and indigents can afford to pay the NHIF contribution by reducing the rate from the current Ksh500 per month to Ksh300,” read part of the proposed changes to the bill

The proposal to reduce the monthly contributions for informal workers comes at a time the State is seeking to compel all adult Kenyans to contribute to the NHIF and employers to match workers’ monthly contributions to the fund.

This is in a bid to achieve the Universal Health Coverage (UHC)- initiated by the government as part of the Big Four Agenda.

Recently, NHIF CEO Peter Kamunyo pointed out that more than half of members’ accounts had been declared dormant after their owners failed to continue funding them.

The State has proposed to make it compulsory for employers to match the Sh1,700 monthly remittances that top contributors make to the NHIF.

Employers have, however, opposed the proposal, warning that it would not only affect the wage bill and sustainability of enterprises but also weaken the capacity of businesses to create employment and sustain the existing jobs.

NHIF membership will be compulsory for every adult Kenyan, contributing 500 shillings every month or 6,000 shillings annually, if Parliament adopts the proposed changes to the NHIF Act.

The majority of Kenyans, especially those who earn a low income, lack medical insurance hence resort to paying hospital bills out of their pockets.

According to NHIF, 5.7 million members or 54 percent of its members had stopped paying premiums by the end of last month, including some that had benefited from the insurer’s services.

Read More: Mandatory NHIF To Be Rolled Out For Every Kenyan