Kenyan President William Ruto has approved controversial legislation in the biggest shake-up of the health sector in more than 20 years, with a new health fund requiring salary contributions of 2.75% from all workers.
However, many Kenyans are objecting to what they see as just another tax, amid fears that the new healthcare fund will be beset by corruption, like the existing system.
Ruto aims to promote universal healthcare, saying the new Bill will make health services more affordable and accessible for poorer Kenyans, reports BBC.
But many see this as the latest in a series of measures introduced by Ruto that are worsening the cost-of-living crisis, despite him winning the elections last year with a promise to ease people’s financial difficulties.
Some also fear the new healthcare fund be as corruption-ridden as the existing system.
The current NHIF has lost billions of taxpayer-contributed funds to corruption, denying many paying Kenyans access to healthcare.
Critics also fear that the new social healthcare body will spend most of the collected funds on administrative expenses, like the current NHIF, leaving few resources for direct healthcare costs.
But Parliament has backed Ruto, passing the Social Health Insurance Bill, along with three other health bills, last week.
With the new fund, the minimum contribution is set to double, with most salaried workers contributing a higher proportion of their pay. Additionally, every Kenyan must register as a member of the Social Health Insurance Fund that replaces NHIF.
Ruto says it will ensure that every Kenyan can go to a hospital and receive treatment without financial hardship.
But the new laws do not address what happens when individuals cannot afford contributions.
Employers, who have to match their employees’ contributions, have opposed the 2.75% deduction, saying it will hurt businesses and aggravate the cost-of-living crisis, which fuelled a wave of protests earlier this year.
Health and civil society organisations have also spoken out, saying the 2.75% deduction is substantial, considering the recent rise in fuel prices and living costs.
BBC article – Kenya healthcare: President William Ruto signs controversial UHC bills (Open access)
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