President Ruto is poised to push for rich individuals in the country to pay more for National Hospital Insurance Fund (NHIF). This comes after a similar proposed bill was rejected by the former members of parliament of the previous government,

The president argues that charging high-earning individuals more would increase the funding pool of the scheme. In addition to that, it will allow the NHIF to boost its services to the poor without hurting the fund’s finances.

NHIF earlier this year had proposed that individuals earning more than Sh. 100,000 to contribute more than 1.7% of their pay. It was rejected by parliament, despite Dr. Ruto’s support for it as Deputy President. Workers earning above Sh. 100,000 currently, pay a monthly contribution of Sh. 1,700.

President Ruto previously stated that the contribution was ‘too little’ for high earners.

Now, President Ruto’s party, UDA, has the majority of the seats in parliament and is expected to receive enough backing to set the bill in motion and support the NHIF proposal. This will be a relief for the insurer after a long search for ways that it could increase its funding to implement a universal health plan.

“Our health agenda is premised on fundamental reforms in the way healthcare is financed and provided. Contributions to the National Health Insurance Fund will now be graduated and will depend on people’s income,” Mr. Ruto said at his swearing-in ceremony Tuesday.

A review of the remittances to the state corporation on a new scale would mean that workers earning above Sh. 200,000 monthly to pay Sh. 3,400 contribution, those earning above Sh. 500,000 monthly would have to pay nearly five times at Sh. 8,500 monthly.

The CEO National Hospital Insurance Fund, Peter Kamunyo promised to revive the proposal. The move by the President is said to likely trigger unrest from employers who have opposed the increased monthly premiums.

The Federation of Kenyan Employers (FKE) asserted that this would affect the wage bill and sustainability of businesses to create new jobs and maintain existing ones.

NHIF says that by having top earners pay more premiums and compulsory membership for Kenyans above 18 years, the scheme would increase by Sh. 20 billion annually.

The mandatory membership is an upgrade of the previous scheme where only workers in the formal sector are compelled to join. Informal workers had a choice to join or drop for membership, with their monthly contributions set at Sh500.

Increased funding is critical to the NHIF given that claims are expected to increase significantly under the Universal Health Care Coverage plan.