Kenya’s President William Ruto has given the green light to a set of new laws that aim to bring major changes to the country’s healthcare system, marking the most significant transformation in over two decades.
The core of his plan is to make healthcare available to everyone, with a requirement for all employees to contribute 2.75% of their earnings to a fresh healthcare fund.
The government believes this will lead to more affordable and accessible healthcare, particularly for those with limited financial means.
However, this move hasn’t been embraced by many Kenyans, who view it as a new tax.
They perceive it as another financial burden on top of previous measures introduced by President Ruto, which they feel have worsened the overall cost of living.
It’s worth noting that he won last year’s election with a promise to alleviate financial struggles for families.
Some individuals are also concerned that the new healthcare fund may suffer from corruption, similar to the existing one, resulting in difficulties in accessing the healthcare services they’re entitled to.
Despite these reservations, Kenya’s parliament has given its approval to President Ruto’s plan by passing the Social Health Insurance Bill, along with three other health-related bills.
Presently, Kenyan citizens pay a monthly contribution to the National Health Insurance Fund (NHIF), ranging from 150 Kenyan shillings ($1) to 1,700 shillings.
The new fund will replace NHIF, with the minimum contribution doubling and most salaried workers contributing a higher percentage of their income.
Kenya’s Health Minister, Susan Nakhumicha, argues that this new plan is fairer because it allows people from all income levels to contribute in proportion to their earnings.
She points out that lower earners currently pay a higher percentage of their income compared to wealthier individuals.
Employers, who are required to match their employees’ contributions, have voiced their concerns about the 2.75% deduction, deeming it too high.
They fear it might negatively impact businesses and exacerbate the cost-of-living challenges, which led to widespread protests in Kenya earlier this year.
In June, President Ruto signed the Finance Act, introducing another unpopular provision: a 1.5% housing levy payable by both employers and employees.
This measure aims to assist the government in providing affordable housing, a necessity at a time when property prices are beyond the means of many urban Kenyans.
Some health and civil society organizations have also criticized the healthcare plan.
They argue that the 2.75% deduction is substantial, especially in light of recent increases in fuel prices and living expenses.
To access public health services, Kenyans will need to register with the proposed National Social Health Insurance Fund.
Those who fail to enroll will be denied these services.
To assist individuals who cannot afford to contribute to the fund, the government has set aside 26 billion shillings.
The new fund’s purpose is to replace the current NHIF, which has experienced substantial losses due to corruption, resulting in many paying Kenyan citizens being unable to access healthcare.
There’s still apprehension among Kenyans that the new fund may attract more corruption, while they continue to face hurdles in receiving healthcare from the state.
Critics are also worried that the new social healthcare organization might allocate a significant portion of the collected funds to administrative costs, similar to the current NHIF, leaving limited resources for actual healthcare expenses.
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