Civil servants have petitioned Parliament to help them unlock a stalemate with the National Treasury over the engagement of NHIF as the NYS staff insurer.
The Union of Kenya Civil Servants faulted the ministry for transferring the NYS’ work injury benefits and group personal accident cover to the state insurer.
UKCS deputy secretary Jerry ole Kina said the decision – through a Cabinet resolution in September 2017 - contravened procurement laws.
The unionist sounded the alarm that the state insurer is not regulated by the Insurance Regulatory Authority, hence it would be difficult to monitor the administration of the fund.
Ole Kina argued that NHIF was single-sourced yet it is not an insurance company, adding that they are alarmed by the recent graft allegations at the entity.
Eighteen suspects, among them former NHIF CEOs, are in court over the alleged loss of Sh1.5 billion at the health insurer.
Ole Kina, in a petition being discussed by the Labour committee chaired by Bura MP Ali Wario, says the Act on which NHIF is anchored restricts it to offering medical covers.
“To us, the decision to transfer the administration of the injury benefits and group personal accident to NHIF at a time when the transparency and accountability of the fund is in serious question, is another conduit for siphoning funds,” the unionist said.
He adde, “It is our concern that the decision is aimed at misappropriating the cover through fraudulent claims considering that NHIF still provides medical cover and there is no distinction between the two schemes.”
Civil servants are also questioning why the government is insisting on the entity as the administrator for some Sh1.053 billion in pending claims owed to over 600 injured workers.
The claims, some dating over 15 years ago, are yet to be processed despite the beneficiaries presenting complete files.
“Why can’t the Treasury settle pending claims before handing over the cover to a new administrator?” Ole Kina asked, further stating that there was no stakeholder participation.
The Interior ministry is yet to pay some 300 affected workers Sh456 million while 98 health workers have been chasing Sh302 million for ages.
About 60 police officers are also demanding Sh96 million whereas some Education ministry staff are yet to get Sh40.2 million.
The ministry of Transport has been served claims of Sh24.8 million with its Agriculture counterpart being pressed for Sh24 million it has not honoured.
President Uhuru Kenyatta and DP William Ruto’s offices have 14 workers who are seeking Sh13.2 million and Sh2 million respectively.
Staff at the Treasury ministry have also waited for long to get Sh15.7 million; Defence (Sh3.45 million), Environment (Sh2.7 million) and Mining (Sh1.1 million).
Ole Kina said they wondered how NHIF will segregate the civil servants' medical cover from workman’s injury benefit considering the latter also covers for occupational diseases.
In November 2017, Treasury and NHIF informed a committee that was to oversee the implementation of civil servants comprehensive medical cover of the change in policy.
Ole Kina argues that they opposed the proposal citing the numerous schemes currently being managed by the NHIF.
“The recommendations in the policy change document were questioned. A claim that NHIF has individual medical treatment records is a fallacy. Further, the recommendations in the policy change document did not provide for officers below Job Group L,” the petition reads.
The union wants the capacity of NHIF to administer the workman injury benefit cover be ascertained before any funds are remitted to the insurer.
Government employees are entitled to compensation under the WIB Act 2007 for work-related injuries and occupational diseases contracted in the course of their employment.
