The National Hospital Insurance Fund (NHIF) contributions will now be reformed to reflect the income of Individual contributors, according to a statement from President William Ruto.
The new head of state declared that contributions to the NHIF will now be graduated and determined by individuals’ incomes.
This comes after the President committed to decrease the minimum NHIF contributions from Sh500 to Sh300 and grant waivers to impoverished households while on the campaign trail in Kirinyaga County three months prior.
Then he went on to say that in order to guarantee that the nation has access to universal healthcare, waivers will be given to individuals who are unable to pay the monthly charges.
The NHIF Amendment Bill was signed into law in January of this year and went into force the following month.
The Amendment Act modifies the NHIF Act by requiring anyone over the age of 18 who are not currently registered under NHIF to do so and pay contributions to the NHIF, a statutory insurance fund that gives Kenyans access to healthcare.
Every employer is required by the Act to make contributions on behalf of their employees.
It specifies that the employer must make employee contributions by matching employee contributions with a certain dollar amount.
This means that the employer must withhold the required contributions based on the employee’s gross salary in accordance with the NHIF-gazetted rates and make a matching contribution equal to the amount withheld from the employee. However, the law states that an employer who offers his employees better health benefits than those provided by NHIF, including private health insurance, is exempt from making the matching contribution.