As Kenya’s healthcare landscape evolves, understanding the transition from old to new NHIF rates in 2024 is crucial. This article provides a comparative analysis of the historical NHIF rates and the proposed changes, offering insights into the implications for individuals and employers.
Old NHIF Rates (2021):
In 2021, NHIF introduced a tiered contribution system based on employees’ gross monthly income. Ranging from a minimum of Kes. 150 to a maximum of Kes. 1,700, these rates aimed to create a fair and equitable structure. NHIF membership was inclusive, extending to individuals in the informal sector, retirees, self-employed individuals, and voluntary contributors. The introduction of a 15% Insurance relief through the Finance Act No. 8 of 2021 provided a financial incentive for employees, aligning with existing tax regulations.
Proposed NHIF Changes (2024):
The government’s proposed changes for 2024 mark a departure from the traditional NHIF structure. The plan involves dissolving NHIF and establishing three distinct funds: the Primary Health Fund, Social Health Insurance Fund, and Emergency, Chronic, and Critical Illness Fund. The proposed model requires both employed and unemployed Kenyans to contribute 2.75% of their gross monthly income to support the Universal Health Coverage scheme.
Key changes include a standardized contribution rate of 2.75% for salaried individuals, a special rate for self-employed individuals, and increased contributions for certain vulnerable groups. Additionally, the waiting period for benefits access will be reduced from 90 to 60 days.
Comparative Implications:
- Equity and Accessibility:
- Old rates aimed at equity; proposed changes seek enhanced accessibility and affordability.
- Financial Impact:
- Increased contributions may pose challenges for unemployed and high-income individuals.
- Government Commitment:
- Commitment to vulnerable individuals may strain finances amid existing budget deficits.
- Employer Responsibilities:
- Employers face new mandates, deducting 2.75% of employees’ salaries for NHIF contributions.
Conclusion:
As Kenya navigates these shifts in healthcare financing, understanding the nuances of old and new NHIF rates is crucial. Whether it’s the historical tiered system or the proposed 2024 changes, each plays a pivotal role in shaping the future of healthcare accessibility and affordability in Kenya. Stay informed to make empowered decisions for your health and financial well-being.
