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Employers warn of labour unrest over new NHIF rates
MANAGEMENT | Lobby says it doubts the Fund’s capacity to utilise cash
The FKE boss wants to know how the new rates were arrived at and how they will affect the overall staff deductions “to avoid a situation where the total deductions amount to more than two-thirds of the gross salary which is the upper limit set in law”. Under the law the employer cannot deduct more than two-thirds from an employee’s salary. “So we are concerned that employees may not be in a position to meet this threshold,” Ms Mugo noted. In the current NHIF rates, salaried workers’ contributions to NHIF range from Sh30 to Sh320. NHIF has over time been criticised of misusing funds, a situation that has dented its credibility. FKE has also questioned the fund’s capacity to handle the intended contributions.
“Such actions show lack of clear direction on how to implement the government’s plan for universal healthcare,” Ms Mugo said. The employers have also voiced their concerns over the repeated exclusion of FKE and Cotu from the National Social Security Fund board of trustees meetings. “FKE has learnt that the NSSF board has been holding meetings without sending invitations to the FKE executive director and Cotu secretary General,” FKE board member Ms Gilda Odera said, adding that the argument used for this, is that Cabinet Secretary Kazungu Kambi has not re-gazetted the FKE and Cotu representatives to the board after the court nullified the previous gazette notice. She demanded implementation of the court order.
The FKE boss wants to know how the new rates were arrived at and how they will affect the overall staff deductions “to avoid a situation where the total deductions amount to more than two-thirds of the gross salary which is the upper limit set in law”. Under the law the employer cannot deduct more than two-thirds from an employee’s salary. “So we are concerned that employees may not be in a position to meet this threshold,” Ms Mugo noted. In the current NHIF rates, salaried workers’ contributions to NHIF range from Sh30 to Sh320. NHIF has over time been criticised of misusing funds, a situation that has dented its credibility. FKE has also questioned the fund’s capacity to handle the intended contributions.
“Such actions show lack of clear direction on how to implement the government’s plan for universal healthcare,” Ms Mugo said. The employers have also voiced their concerns over the repeated exclusion of FKE and Cotu from the National Social Security Fund board of trustees meetings. “FKE has learnt that the NSSF board has been holding meetings without sending invitations to the FKE executive director and Cotu secretary General,” FKE board member Ms Gilda Odera said, adding that the argument used for this, is that Cabinet Secretary Kazungu Kambi has not re-gazetted the FKE and Cotu representatives to the board after the court nullified the previous gazette notice. She demanded implementation of the court order.
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