Workers Union Opposes Proposed Tax on Health Insurance

Kisumu,

Friday November 24,2023,

KNA by Robert Ojwang'

Kenya County Government Workers Union (KCGWU) has faulted the proposed measures by the government to deduct 2.75 percent of the gross salary of employed individuals to fund the Social Health Insurance Fund (SHIF).

 The KCGWU Deputy General Secretary, Dr John Ndunda decried that the additional tax will hurt civil servants who are already burdened with new taxes and levies and are already struggling due to the rising cost of living.

“Our members are suffering because the taxes have increased yet the salaries have remained constant. Workers have been subjected to a vicious cycle of poverty despite being employed contrary to natural justice,” Dr Ndunda lamented when he graced the Union’s annual general meeting in Kisumu County on Friday.

The labour leader said the county employees from the 47 counties are opposed to the new scheme citing a lack of government’s commitment to involve relevant stakeholders before its rollout.

He pointed out that the proposed tax would hit not only higher-income Kenyans but also many people in the informal sector with lower income who are expected to pay upfront annual contributions to benefit from health insurance.

“The SHIF Act is retrogressive as it will increase the contributions from the workers and reduce the benefits for the workers. An individual earning Sh.500,000 and was contributing Sh.1,700 for NHIF, will be deducted Sh.13,750 and the health benefits are ungenerous,” he stated.

The Union representing County staff threatened to move to court if the government does not rescind its decision to enforce the Social Health Insurance Bill 2023.

“We have instructed our lawyers to critically analyze the document and point out some of the clauses that are unconstitutional and oppressive to our members. We will be moving to court to ensure that such sections which are not beneficial to our members are expunged,” he stated.

Health Cabinet Secretary Susan Nakhumicha designated through a gazette notice November 22 this year as the effective date of the Social Health Insurance Act to pave the way for the reforms in the new health financing model.

Courtesy; KNA