NHIF lowers monthly contributions for informal workers

*The National Hospital Insurance Fund (NHIF) is set to reduce monthly contributions for informal workers from the initial Ksh500 to Ksh300. 

Initially, informal workers paid Ksh350 which increased to Ksh500 to increase the monthly collections.

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

Part of the proposed changes to the bill read, "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." 

According to NHIF CEO Peter Kamunyo, more than half of accounts of members members' had been declared dormant after their owners failed to continue funding them.

Kamunyo also said that most Kenyans opted to pay the monthly NHIF contributions only when they needed it. 

"The majority who have remained active have a history of chronic illnesses, and the insurance is a relief for them. The ones who stay are those on chronic treatment such as dialysis. They pay Ksh6,000 for the family and get up to Ksh935,000 every year," the NHIF boss stated.

NHIF is currently looking to increase their annual collections through compulsory membership for all Kenyans. 

The government initiated the Universal Health Coverage (UHC) as part of the Big Four Agenda and the current move by NHIF aims at achieving it. 

Most Kenyans, particularly low-income learners, lack medical insurance and they end up paying hospital bills out of their pockets, leaving families with the burden of major financial constraints due to high treatment costs.