By Enyichukwu Enemanna
Kenya’s President William Ruto has signed a new legislation which makes it mandatory for all workers to contribute 2.75% of their salaries towards a new health fund.
Seen as the biggest shake-up of the health sector in more than 20 years in the East African country, Ruto says his plan revolves around promoting universal healthcare.
The new law will make healthcare more affordable and accessible for poorer Kenyans, government has insisted even as Kenyans allege that the law is a plan to impose a new tax.
They say it is the latest in a series of measures that Mr Ruto has introduced, worsening the cost-of-living crisis.
Ruto won election last year with a promise to ease the financial difficulties of families, a promise majority of Kenyans believe have not been fulfilled.
Some Kenyans have also expressed concern that the new healthcare fund will witness massive corruption, like similar programmes in the past.
They claim that they are unable to access the health services they are entitled to.
But parliament has backed Mr Ruto, passing the Social Health Insurance Bill, along with three other health bills, on Tuesday.
Currently, Kenyans pay between 150 Kenyan shillings ($1; £0.80) and 1,700 shillings monthly to a National Health Insurance Fund (NHIF) to access health care, a programme they say have not been functional.
It will be replaced with a new fund, with the minimum contribution set to double and most salaried workers contributing a higher proportion of their pay.
Kenya’s Health Minister Susan Nakhumicha has said that the new plan is better as it “will allow Kenyans of all walks of life to contribute according to their income”.
She said lower earners currently pay a higher percentage of their income than higher income earners.
Employers, who are required to match their employees’ contributions, have opposed the 2.75% deduction as too high.
They say that it will hurt businesses and aggravate the cost-of-living crisis, which fuelled a wave of protests across Kenya earlier this year.
In June, Mr Ruto signed the Finance Act, another unpopular piece of legislation that introduced a 1.5% housing levy payable by both employers and employees, to help the government to provide affordable housing at a time when prices are so high that many urban Kenyans cannot afford to buy homes.
Some health and civil society organisations have also spoken out against the health plan, saying that the 2.75% deduction is substantial, considering the recent rise in fuel prices and living costs.
Kenyans will be required to register to the proposed National Social Health Insurance Fund to access public health services and those who fail to enrol would be denied services.
