Employers anxious over lack of clarity on NHIF rates deduction

Federation of Kenya Employers Executive Director Jacqueline Mugo says basing statutory payments on gross earnings is punitive to employers and employees. [PHOTO:FILE/STANDARD]

Federation of Kenya Employers (FKE) is calling for immediate suspension of the new National Hospital Insurance Fund (NHIF) rates since there are contentious issues that need to be ironed out before its implementation.

FKE Chief Executive Officer Jacqueline Mugo said employers have issue with the directive that deductions be effected on employee’s gross income. “This is an area of concern to us considering the financial implications and that NHIF has not provided clarity on what constitutes gross income,” she said while attending FKE Coast region 55th annual general meeting in Mombasa.