NHIF’s New Fines: Impact on Kenyans & Employers
If the Social Health Insurance Bill proposed by President William Ruto’s administration becomes law, employers will face penalties in the millions of dollars for various infractions.
The bill, introduced by National Assembly Majority Leader Kimani Ichung’wah, proposes a Ksh1 million sanction for employers who fail to timely remit the contributions of their employees to the Fund.
Employers who deduct an inordinate amount from their employees’ wages will be fined Ksh1 million.
In addition, employers who are convicted of offenses related to mishandling their employees’ deductions could face up to three years in prison.
Conversely, Kenyans who impersonate others to receive financial benefits will be fined Ksh1 million or sentenced to one year in prison.
“For the purpose of obtaining any benefit for himself or herself or for any other person knowingly makes any false statement or representation, or produces or furnishes, or causes to be produced or furnished, any document or information which he or she knows to be false in any material particular commits an offence,” the Bill proposes.
In addition to employers, hospitals will face hefty penalties for offenses such as submitting false claims to increase their reimbursement from the fund.
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The bill proposes a Ksh500,000 sanction for instances in which medical facilities falsify documents to obtain Fund payments.
In addition, sanctions may include suspension or exclusion from Fund programs.
In contrast, Kenyans who impersonate others to receive financial benefits will be subject to a Ksh1 million fine or a one-year prison sentence.
Government officials convicted of misappropriating funds collected from Kenyans are subject to hefty penalties of Ksh10 million.
“A person who misappropriates any of the funds or assets of the Fund, or assists or causes any person to misappropriate or apply funds, otherwise than in the manner provided in the Act, commits an offence and shall upon conviction, be liable to imprisonment for a term not exceeding five years or to a fine not exceeding Ksh10 million or to both,” read the Bill in part.
The bill, which seeks to reform the health sector, is currently in its second reading and is scheduled to be debated in the coming days as amendments are proposed by legislators.
NHIF’s New Fines: Impact on Kenyans & Employers
