A trade union at the grassroots has threatened to move to court if the government does not rescind its decision to enforce the Social Health Insurance Bill 2023, which it says will hurt their incomes.
“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,” the Kenya County Government Workers Union (KCGWU) Deputy Secretary General Dr John Ndunda said.
He further vowed to resist attempts by the government to impose further taxes on the already burdened Kenyans, who have a huge responsibility of keeping their children in school.
The union faulted the proposed measures by the government to deduct 2.75 per cent of the gross salary of employed Kenyans to fund the Social Health Insurance Fund (SHIF).
Ndunda lamented that the additional tax will hurt civil servants who are already burdened with new taxes and levies and are 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 (AGM) in Kisumu.
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 incomes 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. An individual earning Ksh500,000 and was contributing Ksh1,700 to NHIF will be deducted Ksh13,750,” he stated.
Health Cabinet Secretary (CS) Susan Nakhumicha designated through a gazette notice November 22 this year as the effective date of the SHIF to pave way for reforms in the new health financing model.
Fredrick Odiero
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