The Ministry of Health has given directions on how the deductions in the new Social Health Insurance Fund will be done for kenyans in all sectors (working, jobless and needy Kenyans)
According to Health Cabinet Secretary Susan Nakhumincha, all kenyans from both formal and informal sectors will make a percentage of contributions in accordance with their earnings.
Last week, the court of appeal allowed the government to start implementing the newly proposed health fund that will see kenyans make contributions for the same after the court’s order. Here’s a breakdown of the same:
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Employed Kenyans in the Formal Sector.
All employed Kenyans will contribute 2.75 per cent of their gross salary deducted every month to be transferred to the new Social Health Insurance Fund that will replace the National Hospital Insurance Fund (NHIF)
Kenyans earning Ksh. 100,000 and more will contribute a sum of Ksh. 2,750 while those earning Ksh. 90,000 will contribute Ksh. 2,745. Kenyans earning 80,000 and 70, 000 will contribute Ksh. 22,00 and Ksh. 1925 respectively.
In addition, employed Kenyans earning Ksh. 60,000 and Ksh. 50,000 will contribute Ksh. 1650 and Ksh. 1375 respectively. Those earning Ksh. 40,000 and Ksh. 30,000 will contribute Ksh. 1, 100 and Ksh. 825 respectively. Kenyans earning 20,000 and 10,000 will contribute Ksh. 550 and Ksh. 300 respectively.
The ministry set Ksh300 as the minimum contribution for those with a monthly salary and will deduct the ammount by the 9th day of every month.
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“The Cabinet Secretary to the National Treasury shall deduct and remit the contributions of employees in the public service in the National Government and in a public office in the National government to the Authority on behalf of the National Government by the ninth day of each month.”
Kenyans in Informal Sector.
Kenyans in the informal sector will have to part ways with 2.75 per cent of their monthly income. However, the Ministry will give them more time to remit the same as compared to employed kenyans with their minimum contributions set at Ksh. 300.
The Authority, in collaboration with the Ministry responsible for cooperatives and micro, small and medium enterprises development and other financing institutions, shall provide premium financing to non-salaried persons to enable them to pay their annual contributions within the intervals under which their income becomes available.
The amount payable shall be paid fourteen days before the lapse of the annual contribution of the beneficiary
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Needy/ Vulnerable Families
According to the new Social Health Insurance Fund policy, needy families will be catered for by both the national and the county governments.
“The Ministry of Health, the Ministry of Social Protection and the county governments shall identify the households that require financial assistance and submit the list of such households to the Authority”