From left: ICEA Lion General Manager Business Development and Technical Services George Nyakundi, Minet Kenya Director Employer Benefits Lydiah Macharia and UAP Old Mutual Group Managing Director of Health Isaac Nzyoka during a roundtable on state of healthcare costs in Kenya in Nairobi yesterday. [Elvis Ogina, Standard]

The cost of healthcare incurred by Kenyans has overrun the general cost of living in households by almost half in the past one year, a report shows.

According to a survey by insurance brokerage firm Minet Kenya, general inflation in 2017, which stood at 8.02 per cent, was way below medical inflation which stood at 12 per cent.

This means Kenyans spent most of their annual incomes paying for their families’ healthcare, more than what they spent on food, rent and other basic necessities.

The survey found that self-sponsored medical insurance cover is still out of the reach of ordinary citizens who are not in formal employment.

General inflation

READ MORE

 Kenya surpasses UNAIDS targets for universal HIV diagnosis, viral suppression

 Report raises concern over rate of men dying of AIDs complications

 Thika level 5 hospital sees surge in regional patients

 Guidelines launched to reduce maternal deaths

“Medical inflation is on the rise, surpassing general inflation last year. This is as a result of rising cases of lifestyle diseases among even ordinary Kenyans. Other things like the cost of medical machinery, which is usually imported, also drive the cost up, especially when a strong dollar is involved,” said Aon Minet Chief Executive Sammy Muthui at a roundtable on the cost of healthcare in the country in Nairobi yesterday.

Mr Muthui also noted that according to data from the Insurance Regulatory Authority (IRA), while the medical insurance industry recorded a marginal growth of 0.65 per cent in gross premiums, claims incurred over the same period increased by 12 per cent.

Claims in the medical cover segment have remained high, more than in any other segment in the past three years, according to IRA’s 2017 industry survey.

Aon’s internal survey also revealed that several hospitals increased their costs two-fold last year compared to 2016.

The group managing director of health business at UAP Old Mutual, Isaac Nzyoka, said the situation for ordinary Kenyan households could get worse even for those in formal employment.

This is because of job redundancies that have affected all sectors of the economy in the past one year.

“Many Kenyans who lost their jobs and owed their medical covers to their employer have lost those covers and can’t afford to pay premiums on their own,” he said.

The covers also extended to family dependents, who have now also been left exposed.