Anxiety grips NHIF personnel after signing of insurance law

Staff members working for the National Hospital Insurance Fund (NHIF) are now in panic mode following the passage of the Social Health Insurance Bill that will change the fund to a scheme.

The NHIF staff who did not want to be quoted, said staff have been operating with low morale as they are not aware of their fate following the passage of the bill that will now require them to reapply for their jobs.

Members, although the law seems to give them a fall back plan, there is no guarantee that they will be re-employed should they apply for the positions they are currently holding.

Said one of the staff members: “Things are not so easy at the moment, I don’t even know whether I have a job or not. These people really don’t care about us.”

Another member who also sought anonymity revealed that NHIF was not involved in the crafting of the said bill, neither were their views sought.

The said member added: “This bill was being drafted by the Ministry of Health and State House officials, we do not know anything about this bill and we do not know what will happen to us. We are at a loss.”

The move comes after senators last week passed the said bill after members of the National Assembly concluded with it.

The Bill which seeks to provide for the setting up of the Primary Healthcare Fund and the Social Health Authority (SHA), the two institutions that will replace the current NHIF, provides that the NHIF board winds up the fund within one year from the appointed day.

To recruit new staff

Once this is done, the bill provides that Authority to competitively recruit and appoint new staff subject to the approved staff establishment.

However the bill allows the current staff to re-apply for the said positions as advertised by the authority where they qualify.

Reads the bill:  “The staff of the fund are eligible to apply for the said positions as advertised by the authority and may be considered for appointment where they are suitable qualified for the position advertised. A staff of the fun not appointed by the authority may exercise his or her option to either retire from the service of the Authority; or be redeployed within the public service.”

The said bill was passed alongside three others including, the Primary Health Care Bill, 2023; the Facilities Improvement Financing Bill; and the Digital Health Bill, 2023. Ironically, the bill was passed just days after NHIF got a new Chief Executive Officer and as of now it is not clear how long he will remain in office before the fund is disbanded.

Recruiting new CEO

Despite the appointment of the new Chief Executive, the new bill also provides the process of how the authority will appoint the Chief Executive who will hold office for a period of three years and shall be eligible for re- appointment for one further term of three years.

A person shall be qualified for appointment as the chief executive if they bachelor’s degree from a university recognized in Kenya, has at least ten years knowledge and experience in health insurance, health financing, health economics, healthcare administration or any other relevant field, has served in a management level for a period of at least five years;

Reads the bill: “The Chief Executive Officer shall, subject to the directions of the Board, be responsible for the day to day management of the affairs and staff of the Board.”

Currently, Kenyans pay between 150 Kenyan shillings ($1; £0.80) and 1,700 shillings monthly to NHIF. It will be replaced with a new fund, with the minimum contribution set to double and most salaried workers contributing a higher proportion of their pay. With the new law, every Kenyan must register as a member of the Social Health Insurance Fund that replaces NHIF.

Ruto says the universal health insurance will ensure that every Kenyan can go to the hospital and receive treatment without facing financial hardship.

Kenya’s Health Minister Susan Nakhumicha has said that the new plan is better as it “will allow Kenyans of all walks of life to contribute according to their income”.

She said lower earners currently pay a higher percentage of their income than the better off. Employers, who are required to match their employees’ contributions, have opposed the 2.75% deduction as too high. They say that it will hurt businesses and aggravate the cost-of-living crisis, which fuelled a wave of protests across Kenya earlier this year.