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KMPDU reject Ruto’s plan to increase tax in NHIF reforms


The Kenya Medical Practitioners Pharmacists and Dentists Union (KMPDU) Secretary General Davji Atellah on May 2, 2023, rejected President William Ruto’s plan to reform the National Health Insurance Fund (NHIF).

In a statement, Dr. Atellah said the president cannot claim to increase NHIF funds by raising deductions from workers by up to 2.75 percent of gross salaries yet the government slashed NHIF funding.

“Civil servants’ medical allowance was removed from payslip to cover NHIF comprehensive services. And now without a medical allowance or salary increases.

We cannot subject ourselves to extractive action on workers’ payslips. Instead, workers expect a salary increase to deal with the cost of living and inflation,” read part of the statement.

KMPDU boss said that the national and county governments had directed over Ksh120 billion of remittances from NHIF to private insurance companies.

During Labour Day celebrations, President Ruto announced the government had changed the contribution formula and that those paying Ksh500 will part with Ksh300 every month.

The president said his contribution to the fund will increase from Ksh1,700 to Ksh27,500.

“It does not make sense that the president pays Ksh1,700 every month and the normal mwananchi pays Ksh600 to have NHIF. My salary is Ksh1 million, and the boda boda guy earns an average of Ksh5,000. Is it sensible?” Ruto said.

“Everyone one of us is going to contribute 2.7 per cent of their earning to NHIF so that we can carry this load of health equally,” Ruto declared.

In the proposed reforms, Kenyans earning a gross salary of Ksh50,000 will contribute Ksh1,350 monthly, Ksh100,000 will contribute Ksh2,700 per month.

Those earning KSh 200,000 will pay KSh 5,400 every month, while those earning a gross salary of KSh 300,000 will pay KSh 8,100 monthly.

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