Central Organization of Trade Unions (COTU) has issued a 14 day strike notice over the new National Hospital Insurance Fund (NHIF) rates.

Are COTU arguments valid, or is NHIF working in the worker's interest?

Francis Atwoli, COTU Secretary-General, has raised several arguments against the new NHIF rates, the most pronounced being that the new rates are aimed at financing some individuals’ political campaigns.

Mr. Atwoli has further accuses NHIF management of awarding two healthcare providers, Meridian and Clinix, millions of shillings in capitation amounts (treatment fees) yet some of its clinics were unavailable.

COTU has further argued that the new rates are too high for most Kenyans who survive on less than a dollar a day.

There is also the absence of properly equipped facilities; most of the public hospitals are overcrowded and under-staffed thus discouraging NHIF members from visiting them.

There have been arguments that many employers have health schemes for their workers thus the new NHIF rates do not make much sense.

NHIF on the other hand argues that the new rates would enable Kenyans benefit from a comprehensive outpatient and inpatient cover, irrespective of the amount they contribute.

The new NHIF plan would see the minimum NHIF contribution rise from KES 320 per month to KES 2,000 for people earning a monthly gross salary of KES 100,000 and above. Those earning between KES 50,000 and KES 99,999 gross salary would contribute KES 1,500 per month. Formal sector workers earning less than KES 5,000 per month would pay KES 150 while the self employed would remit KES 500 per month. This structure is aimed at having higher paid workers subsidize low-income earners.

If the scheme is to be effectively rolled out would see the poor access affordable health care which they would have otherwise been unable to gain access to. Though if history is to repeat itself, this would be another money generating scheme for the political class.

I sincerely hope that my NHIF contribution won't land into some politician's pocket.