What is NHIF Act?

An Act of Parliament to establish a National Hospital Insurance Fund; to provide for contributions to and the payment of benefits out of the Fund; to establish the National Hospital Insurance Fund Management Board and for connected purposes. [Act No. 9 of 1998, Legal Notice 23 of 1999, Act No. 18 of 2014.]

Is NHIF compulsory in Kenya?

The Kenya National Hospital Insurance Fund (NHIF) is the oldest government insurance scheme in Africa. As the primary provider of health insurance in Kenya its mandate is to provide access to quality and affordable health care for all Kenyans. NHIF membership is compulsory for all salaried employees.

Does employer contribute to NHIF?

National Hospital Insurance Fund (NHIF) contributions Employees in Kenya are required to contribute to the NHIF. There is no corresponding employer contribution. The contributions are graduated, with the maximum contribution currently being KES 1,700 per employee for employees earning more than KES 100,000 per month.

What happens if you fail to pay NHIF?

The law currently imposes a penalty equal to five times the amount of the contribution that is payable by a person for each month or part thereof during which it remains unpaid. MPs amended the NHIF Act, to remove the penalty for late submission of contribution from five times the unpaid amount to a 10 percent penalty.

Is it a must to pay for NHIF?

Summary. All Kenyans will be compelled to be members of the National Hospital Insurance Fund (NHIF) with employers toping up contributions of those who pay less than Sh500 monthly. MPs last evening approved changes to the NHIF Act, which now makes it compulsory for every Kenyan above 18 years to contribute to the fund.

Is NHIF statutory?

Similarly, NHIF (National Hospital Insurance Fund) and NSSF (National Social Security Fund) are mandatory statutory deductions.

What are the challenges of NHIF?

Other challenges were government (or political) influence, poor communication and coordination, poor management of resources, unclear objectives of strategies, lack of quantifiable measures, lack of a monitoring and evaluation programme, and inconsistency between the minimum NHIF contributions and the minimum wage …

How much is NHIF penalty?

NHIF Penalties for Late Payments If you are self-employed, you are attracting a 50% NHIF penalty charge following late payment. For example, if you are contributing Ksh. 500 monthly then you will be paying Ksh. 750 for late payments.

How much is the penalty for NHIF late payment?

What is the fine for not paying NHIF on time?

In order to calculate my NHIF penalty for every month you delayed to pay, you should know that NHIF imposes a monthly penalty of KES 250 for any payment made after the 9th of every month. Basically, you need to know the months which you did not pay before the 9th as per their regulations and add the sum.

Does NHIF have a limit?

The provided limits are per service basis but won’t exceed shs. 50,000.00 annually, per family.

What happens if you dont pay NHIF?

When did NHIF start in Kenya?

The NHIF is a public institution that was established in 1966 to provide mandatory health insurance to formal sector employees, and its mandate later expanded to cover informal sector workers in 1998.

What is UHC in Kenya?

Universal Health Coverage, is one of the “Big Four” strategic pillars declared by the President of Kenya which will see major policy and administrative reforms in the medical sector, to ensure everyone has access to quality and affordable medical coverage by 2022.

What happens if I fail to pay NHIF?

What happens if you delay to pay NHIF?

The Bill stipulates that employers who remit the money late or beyond the 9th of each month will be liable to a penalty of 25 percent of the outstanding contribution and also foot all medical bills for workers who fall sick within the default period.

How can I pay NHIF after defaulting?

Select Paybill. Enter Business Number(200222). Enter your National ID number as the account number and add the letter ‘Y,’ for instance, 12345678y. Use of this letter treats the payment as a penalty.