Ruto Implements NHIF Reforms with Salary Cuts
On Monday, May 1, President William Ruto announced that his salary contributions to the National Health Insurance Fund (NHIF) would increase from the current Ksh1,700 to Ksh27,500.
During Labour Day celebrations at Uhuru Gardens in Nairobi, the president stated that the changes were part of the Fund’s reforms to create a scheme that accommodates more households and is more inclusive.
He added that the scheme would standardize the contribution amount based on earnings.
“It makes no sense that the president pays Ksh1,700 per month for NHIF while the average mwananchi pays Ksh600. My salary is one million Kenyan shillings. The average income of the boda boda driver is Ksh5,000. Is it sensible? We’ve altered the formula for contributions, so those paying Ksh500 will pay Ksh300 in the seventh month.”
On Friday, April 14, 2023, President William Ruto will address residents of Machakos County during the launch of a water project.
“I, as the president who has been paying Ksh1,000, will now pay Ksh27,500, and others will also pay a certain amount,” he said.
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In addition, the Head of State praised the Hustler Fund initiative and confirmed that beginning June 1, 2023, small-scale traders will have access to between Ksh10,000 and Ksh200,000.
To combat the country’s unemployment crisis, Ruto announced that the government would sign bilateral agreements with at least seven nations.
For instance, the president stated that he would sign an agreement with Germany next week that would allow 250 million Kenyans to work in Berlin.
As approximately Ksh400 billion is sent home from Kenyans in the diaspora, he stated that these efforts would go a long way toward ensuring Return On Investments (ROI).
Additionally, digital hubs would be established in each ward to tap into the digital economy and encourage youth to enter the digital jobs sector.
Recent statistics from the Global Age Watch index ranked Kenya 72 out of 96 in terms of countries whose citizens retire in poverty. The president blamed the labor sector for this ranking.
Ruto emphasized the significance of increasing each Kenyan’s savings through the National Social Security Fund (NSSF).
The president stated, “Our savings culture accounts for 8% of our Gross Domestic Product (GDP), whereas countries like China save 55% of their GDP.”
Ruto Implements NHIF Reforms with Salary Cuts
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