The National Hospital Insurance Fund (NHIF) has terminated the comprehensive medical cover for civil servants, the police and prisons, with effect from 1st April 2020.
According to Treasury CS, Ukur Yatani, NHIF will be allowed to engage in the business of commercial insurance only after it is registered under IRA in accordance with the provisions of Section 19 of the Insurance Act.
The new directive, thus, puts about 52 institutions in jeopardy, including state corporations, county governments and private entities.
Before this development, civil servants, police and prisons had been getting special cover using the NHIF card, a privilege that non civil servants who pay the lowest monthly charges of KSh500 did not enjoy.
Daily Nation reports that the Health Fund stands to lose about KSh2 billion that it has been earning from the affected institutions.
This comes a few months after NHIF tried raising monthly payments, a move that received too much backlash from the public, resulting in suspension by President Uhuru Kenyatta.