The National Hospital Insurance Fund ( NHIF) has gazette the new rates which take effect April 1, this year.
In a special gazette notice dated February 6, 2015, the proposed premiums will see those in employment and earning a gross income of up to Sh5,999 contribute Sh150 per month, the lowest contribution according to the proposed rates published by the fund. The self-employed will contribute Sh500 monthly.
The highest monthly contribution is Sh1,700 for those earning Sh100,000 and above. The legal notice was signed by NHIF Chief Executive Simeon ole Kirgotty and the Fund’s Chairman Mohamud Mohamed.
Those earning between Sh8,000 and Sh11,999 will contribute Sh400 while those earning between 12,000 and Sh14,999 will contribute a monthly premium of Sh500.
Those earning between Sh15,000 and 19,999 will contribute Sh600 while those earning between Sh20,000 and Sh24,999 will have Sh750 deducted from their monthly pay slips. While the Central Organisation of Trade Unions had filed a lawsuit challenging the proposed new NHIF rates, it has since withdrawn the case, giving NHIF the green light to effect the new rates.
Expected to be hit most will be low income earners who will now be required to dig deeper into their pockets to make contributions to the National Social Security Fund. The State-pension fund has proposed to increase monthly contributions from the current Sh200 to Sh1,080 per month.