COTU Rejects the Move to Make Employers Pay the NHIF Contributions

The Central Organization of Trade Unions has rejected the proposal for employers to pay NHIF for their workers.

COTU Rejects the Move to Make Employers Pay the NHIF Contributions

According to COTU and its 45 affiliates, the move to make the employers pay the NHIF for their workers is retrogressive.

The workers union argument is that the NHIF Amendment Bill 2021 seeks to change NHIF from a fund to a scheme, a move they hold will change the entity’s mandate.

In essence, this amendment bill will disband NHIF and bring up an amorphous body with a new mandate and new objectives,” COTU said in a statement on Tuesday.

“This is against the wish of Kenyan workers who are the contributing members of NHIF,” unionists said following a meeting in Nairobi.

According to the NHIF Bill 2021, employers will be paying contributions for their workers and not deduct the same from the employees' salary.

Employers failing to pay the contributions will be penalized 25 percent of the total contribution.

The Bill says, “Employer will be liable to pay the penalty and costs incurred by the employee when seeking treatment from a contracted healthcare provider during the period when the contribution is due."

Currently, the National Health Insurance Fund (NHIF) contributions are voluntary while employees have contributions deducted from their gross pay every month.

The proposed Amendment bill is among steps being taken by President Uhuru Kenyatta’s administration to support the Big Four agenda of Universal Health Coverage.