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Teachers reject new NHIF rates

06 May 2015, 10:47 Steven Njugunah

Laikipia - Teachers in Laikipia have threatened to seek legal redress if the new National Hospital Insurance Fund (NHIF) deductions are made from their May payslips.

The teachers rejected the increment in NHIF rates and demanded a refund of already effected deductions.

Speaking at his Nyahururu town office, Laikipia Kenya Union of Post Primary Education Teachers (KUPPET) branch secretary Ndung’u Wangenye noted that a teacher who used to contribute KES 320 per month is now being deducted KES 1 500 – an increment of over 500 percent.

“These new deductions have affected many teachers’ financial borrowing capabilities and might lead to a demoralized work force,” he said.

Wangenye said many teachers had committed their salaries to repay bank and Sacco loans and effecting further deduction to their already over-deducted payslips will see many of their properties attached by the creditors for defaulting.

Read Also: NGO wants NHIF rates reviewed

He said the teachers were not consulted before NHIF increased the rates, saying, “Nobody (TSC and NHIF) bothered to tell teachers about the new rates before they were gazetted.”

The Kuppet official said teachers are already waiting for the implementation of the “comprehensive medical cover” agreement they have signed with AON.

He said going by the new rates, NHIF will be receiving billions of shillings in contributions from members, which he said the NHIF board has no capacity to manage.

The new rates raised contribution by self-employed from KES 160 per month to KES 500. This, Wangenye said will lock out many people in the informal sector from the government health insurance cover.

“Government services are supposed to be subsidized and affordable but the new NHIF rates are no longer affordable,” he said.

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