September, Thursday 19, 2024

Kenya's President William Ruto approves disputed bills for Universal Healthcare Coverage (UHC)


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Kenya's President William Ruto has given his approval to a controversial legislation that will bring about significant changes in the country's health sector. The main objective of the plan is to promote universal healthcare and requires all workers to contribute 2.75% of their salaries to a new health fund. The government argues that this move will make healthcare more affordable and accessible to poorer Kenyans. However, many Kenyans view it as a new tax, adding to the already burdensome cost of living. Some also express concerns about corruption within the new healthcare fund, similar to what has occurred with the existing one, preventing them from receiving the health services they are entitled to. Despite opposition from citizens, parliament has supported President Ruto by passing the Social Health Insurance Bill and three other health bills. Under the current system, Kenyans contribute between 150 and 1,700 Kenyan shillings ($1-$1.70) monthly to the National Health Insurance Fund (NHIF). This will be replaced with a new fund, requiring a higher minimum contribution and proportionately higher contribution from salaried workers. The Health Minister believes this new plan is fairer as it allows individuals to contribute according to their income, addressing the imbalance where lower earners currently pay a higher percentage of their income than the better off. However, employers oppose the 2.75% deduction, arguing it will adversely affect their businesses and worsen the cost-of-living crisis. This follows President Ruto's introduction of the Finance Act earlier this year, which introduced a 1.5% housing levy, sparking protests. Health and civil society organizations have also criticized the new health plan, stating that the 2.75% deduction is significant given the recent rise in fuel prices and living costs. They argue that this burden falls heavily on salaried citizens already struggling to support their families. The proposed National Social Health Insurance Fund will require registration, and those who fail to enroll will be denied services. The government has committed 26 billion shillings to support those unable to contribute to the fund. The new fund aims to address the issue of corruption within the current NHIF, which has misused taxpayer-contributed funds, denying many Kenyans access to healthcare. However, concerns persist among Kenyans that the new fund will only lead to more corruption and continue to deny them healthcare. Critics also worry that the new social healthcare body will allocate most of the collected funds to administrative expenses, leaving minimal resources for direct healthcare costs.