President William Ruto’s administration has introduced the Social Health Insurance Bill, which, if enacted, could result in substantial fines for various violations. The bill, tabled in Parliament by National Assembly Majority Leader Kimani Ichung’wah, aims to ensure timely and equitable remittance of employee contributions to the Fund.
The key provisions of the bill include a proposed fine of Ksh1 million for employers who fail to promptly remit employee contributions. Employers found excessively deducting from employees’ salaries may also face a Ksh1 million penalty. Furthermore, those convicted of mishandling employee deductions could potentially be sentenced to up to three years in prison.
The bill also addresses concerns related to impersonation, with Kenyans who impersonate others to obtain financial benefits facing a substantial Ksh1 million fine or a one-year prison term as an alternative penalty. The bill explicitly defines making false statements, misrepresentations, or producing fraudulent documents to secure benefits as offenses.
Healthcare facilities are not exempt from scrutiny, as the bill proposes fines of Ksh500,000 for instances where facilities manipulate documents to increase reimbursement from the Fund. These penalties may also include the suspension or removal of facilities from the Fund’s programs.
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Government officials are also held accountable, with the bill proposing severe penalties for the misappropriation of funds collected from Kenyan citizens. Those found guilty of misappropriation may face fines of up to Ksh10 million, imprisonment for a maximum of five years, or both.
The bill, designed to usher in comprehensive reforms within the health sector, is currently in its second reading stage. It is scheduled for debate in the coming days as members of Parliament propose amendments. The MPs have chosen to rename the new health body, changing it from the National Health Authority to the Social Health Authority (SHA).
While the bill mandates Kenyan citizens to register with the fund, MPs have shown some leniency toward defaulters by reducing penalties from ten percent to two percent, citing concerns that the initial penalties were excessively severe.
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This proposed legislation shows a commitment to address issues of fund mismanagement, ensure equitable treatment of employees, and establish a robust healthcare system for the benefit of all Kenyans.
