In changes announced by the NHIF board, the fund’s budget was reduced by a whooping Sh1.1 billion in budget cuts geared at lowering administrative costs/NHIF
NAIROBI, Kenya, Feb 18 – The National Health Insurance Fund (NHIF) Monday restructured its 2019/2020 budget dealing a major blow to the publicity sector whose budget was slashed from Sh753 million to Sh100 million.
In changes announced by the NHIF board, the fund’s budget was reduced by a whooping Sh1.1 billion in budget cuts geared at lowering administrative costs.
Bank charges and commissions were lowered from Sh315 million to Sh45 million while the travel and accommodation budget was slashed from Sh312 million to Sh290 million.
During a press briefing held on Monday, the board’s Vice Chairperson Roba Duba said the changes will see current administrative costs reduced from 14 per cent of the total membership collections to below 10 per cent.
Duba announced that the task of accreditation of hospitals has been transferred from the NHIF to the Ministry of Health (MoH) and the fund will only contract from the list prepared by the ministry.
“Following the recommendation of Health Financing Reforms Expert Panel (HEFREP), accreditation of hospitals has transitioned to the Ministry of Health and other health regulatory bodies such as Kenya Health Professionals Oversight Authority (KHPOA) and Kenya Medical Practitioners and Dentists Council (KMPDC),” he outlined in a statement issued by the board.
The board distanced itself from reports of deep-rooted corruption painting the health insurance institution in bad light.
Duba said some of the corruption cases highlighted are historical dating back to 2012.
The NHIF was rocked by graft charges in 2018 which saw the ouster of 20 top officials including its then Chief Executive Officer Geoffrey Mwangi, leading to an overhaul of the institution which resulted to the appointment of a new board.
Since their appointment, the Duba-led board noted that the fund has been working with Directorate of Criminal Investigations (DCI) to ensure culprits are brought to book.
The board also terminated various staff who are being investigated by DCI.
As part of its reforms, the new board proposed a raft of measures some of which were widely opposed by a section of leaders and contributors.
The board had limited a contributor to a single wife and a maximum of five children, changes that were later suspended on orders of President Uhuru Kenyatta.
Duba said the proposed regulations were leaked by some cartels before final compilation.
“There are cartels working to frustrate the reforms spearheaded by the board, most of them are calling for the disbandment of board,” he told the press.
In addition, Duba noted a World Bank technical support mission in the country is working with selected team of managers (technical assistance mission) in liaison with National Treasury.
The team dubbed technical assistance mission seeks to secure up to Sh40 billion, a technical support from World Bank which aims to ensure that Universal Health Coverage (UHC) is achieved.
About The Author
