NHIF Reduces Contributions for Low-Income Earners
During the Labour Day celebrations at Uhuru Gardens in Nairobi on Monday, President William Ruto announced that the government will introduce a new health contribution plan that will reduce the burden of healthcare costs on low-income earners in Kenya.
The President declared that Kenyans earning lower incomes will start paying Ksh.300 to the National Health Insurance Fund (NHIF), which is a reduction from the current Ksh.500 that they are required to pay. Meanwhile, other Kenyans will start contributing 2.7% of their earnings to NHIF.
The move is aimed at creating a more equitable contribution mechanism to the health cover provider and ensuring that Kenyans contribute according to their earnings.
President Ruto explained the new contribution formula with a personal example, stating that he pays Ksh.1,700 every month while a mama mboga (vegetable vendor) pays Ksh.500 to get an NHIF card. He went on to say that those who were paying Ksh.500 would now pay Ksh.300 starting from July.
Furthermore, he stated that he, who was paying Ksh.1,000, would now pay Ksh.27,500, and others in the middle would pay according to their salaries, so that everyone contributes 2.7% of their earnings to NHIF.
President Ruto stressed that the move is part of the government’s commitment to providing better health services to Kenyans. He noted that many Kenyans sink into poverty over medical bills, and the new contribution formula will significantly aid in curbing the setback.
The government aims to make healthcare more affordable and accessible to all Kenyans regardless of their income levels.
In addition to the new contribution formula, President Ruto announced that the government will introduce a volunteer programme that aims to have 100,000 community health promoters who will aid in delivering health services to Kenyans at the bottom of the pyramid. The volunteers will be remunerated by the county government and the state on a 50-50 basis.
President Ruto emphasized that the community health promoters would be equipped to check the pressure and weight of patients, enabling early diagnosis and treatment of diseases.
The President said that the health promoters would visit every family every month, and the government would agree with them on how to remunerate them. He also stated that every county that contributes any money would receive a match from the government.
The President’s announcement of the new contribution formula and volunteer programme has been met with mixed reactions from Kenyans. Some have praised the government for its efforts to make healthcare more affordable, while others have criticized the new contribution formula, arguing that it will still be difficult for low-income earners to afford the Ksh.300 monthly payments.
NHIF Reduces Contributions for Low-Income Earners