President William Ruto has today May 1st announced that he would increase his contribution to the National Health Insurance Fund (NHIF) scheme from Ksh1,700 to Ksh27,500 to create a more inclusive scheme.
Ruto noted that the amount contributed would be harmonized based on the amount earned.
He also praised the Hustler Fund initiative and promised that small-scale traders would receive between Ksh10,000 and Ksh200,000 starting June 1, 2023.
Speaking during Labour Day celebrations at Uhuru Gardens, Nairobi the commander in chief announced that the contribution formula changed hence those paying Ksh500 will pay Ksh300 in the seventh month
Ruto announced that the government would sign bilateral agreements with at least seven countries to address the unemployment crisis in the country.
He also proposed to create digital hubs in every ward to drive youth into the digital job sector.
The president faulted the labor sector for Kenya’s poor performance in the Global Age Watch index in terms of countries whose citizens retire in poverty and stressed the importance of increasing savings through the National Social Security Fund (NSSF).
On the other hand, Health Cabinet Secretary, Susan Nakhumicha Wafula, stated that the Kenyan government would provide tax exemptions on medical insurance for retired employees as well as companies that manufacture vaccines and biopharmaceuticals in the next budget.
The exception is intended to encourage the production of healthcare products that will save lives and to protect the health and safety of retired employees. According to Nakhumicha, retired workers’ payment for medical insurance will be exempted from interest.
The exemption also applies to companies that manufacture vaccines and biopharmaceuticals, and anyone interested in producing vaccines is exempted from some royalties’ interests.
In addition, the government intends to put into operation an advisory body with the purpose of addressing the problems of healthcare professionals in Kenya and submitting recommendations.