By Purity Ngigi Sundays

The National Hospital Insurance Fund (NHIF) Amendment Bill (“the Amendment Act”)was assented to on 10th January 2022 and came into effect on 28th January 2022.

The Amendment Act amends the NHIF Act (“the Act”) by providing for persons above the age of 18 years who are not yet registered under NHIF are required to register and make contributions to NHIF. NHIF is a statutory insurance fund that provides Kenyan citizens access to medical services. 

Every employer has a duty under the Act to make contributions on behalf of their employees. The Amendment Act stretched the employer’s responsibility to make employee’s contributions by requiring the employer to match the employee’s contribution by contributing to the fund an amount equal to that which the employee is liable to pay without deducting the same from the employee’s remuneration

This means that the employer shall be required to deduct the necessary contributions depending on the employees’ gross salary according to the rates gazetted by the NHIF Board and give an additional contribution equal to that deducted from the employee. The provision creates an additional financial burden to the employer.  

However, an employer who provides his employees with a private health insurance cover with better health benefits than those under NHIF is exempt from paying the matching contribution. The employer must apply for an exemption to the NHIF Board by attaching a certificate from the Insurance Regulation Authority to be exempt from paying the matching contribution. The certificate should indicate the benefits under the cover and the validity of the cover.