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Employers reject double taxation on proposed NHIF Act changes

Zachary Ochuodho @zachuodho

Federation of Kenya Employers (FKE) has rejected proposed changes in National Hospital Insurance Fund (NHIF) Act requiring employers to match contributions of employees.

FKE Chief Executive Officer Jacqueline Mugo described changes in the NHIF that also seek to open the fund to investments and to remove stakeholders including employers from the board, as ill-advised, illegal and taken without any participation.

She said the changes will make the labour costs increase and expose the fund to abuse.

“This change constitutes double payment for the same benefit as most employers already have insured medical schemes,” Mugo said during the launch of the 2nd Employer of the Year Awards (EYA) in Nairobi yesterday.

The Statute Law ( Miscellaneous Amendments) Bill, 2018 seeks to fundamentally change Employment Act 11 of 2007 (Amendment) Bill, Labour Relations Act No. 14 of 2007, National Social Security (NSSF) Act No. 45 of 2013 and National Hospital Insurance Fund Act No. 4 of 1998, among others.

On NSSF, she said the employers were opposed to the move to remove workers and employers from the board of trustee and have only government-appointed nominees.

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