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Obligation on Employers under NHIF Act Temporarily Suspended

The Employment and Labour Relations Court (ELRC) in Federation of Kenya Employers v National Health Insurance Fund Management Board & Cabinet Secretary Ministry of Health and 3 others issued a temporary stay on to the enforcement of amendments to the National Health Insurance Fund Act, 1998 (the Principal Act) which is among the laws recently signed by the President vide the National Health Insurance Fund (Amendment) Act No. 1 of 2022 (the Amendment Act).

The amendments also included the operationalization of the changes in the law by gazettement of regulations. The court has also temporary stayed any such gazettement by the Cabinet Secretary pending the determination of the matter.  Key among the amendments temporarily stayed was the obligation upon employers to match the statutory contribution of their employees to the Fund without deducting the same from the employee salary/wages. We shall watch the proceedings and update on the final determination.

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