Gov’t Gives Greenlight on the 2.75% Deduction from Employees
The Kenyan government is set to introduce a new health insurance fund that will require teachers, civil servants, and other salaried individuals to contribute 2.75 percent of their gross pay towards it. This initiative, part of the Social Health Insurance Bill, has received support from Members of Parliament from various political backgrounds.
The bill seeks to establish a Social Security Insurance Authority to replace the existing National Insurance Fund (NHIF). The proposed funding mechanism will increase deductions from the current range of Sh150 to Sh1,700 to a flat rate calculated at 2.75 percent of gross monthly earnings.
Once enacted, the bill will mandate a 2.75% deduction from taxpayers’ salaries to fund the health insurance scheme. However, this has sparked criticism from civil society organizations, which argue that it may overburden Kenyan citizens.
National Assembly Majority Leader Kimani Ichung’wah defended the bill, highlighting its potential to improve healthcare delivery and eliminate corruption within the system. Minority Whip Junet Mohamed emphasized the need to address corruption in the healthcare sector to ensure quality care.
Also Read:Â 2.75% deduction from gross pay to be presented next week
While MPs expressed concerns about the fate of NHIF employees after the proposed authority is established, activists and civil society organizations criticized the government’s approach, calling the 2.75% deduction excessive and urging a focus on addressing corruption.
The Social Health Insurance Bill is one of several proposed bills aimed at operationalizing the health plan, including the Digital Health Bill, Primary Healthcare Bill, and Facility Improvement Bill. If enacted, the bill will establish three funds: the Primary Health Care Fund, the Social Health Insurance Fund, and the Chronic Illness and Emergency Fund to cater to various healthcare needs, including chronic illnesses and emergency treatment.
Gov’t Gives Greenlight on the 2.75% Deduction from Employees
