According to the International Labour Organization (ILO), over 2.7 million workers die each year as a result of work-related accidents and diseases. This translates to a daily count of nearly 7,400 workers per day.
The ILO also estimates that 395 million workers worldwide sustained non-fatal work injuries as at November 2023. These staggering statistics underscore the ongoing challenges in ensuring safe and healthy working environments worldwide. In Kenya, 4,357 workers were involved in accidents at various workplaces between 1 July 2023 and 1 May 2024, according to the Directorate of Occupational Safety and Health Services. Out of these, 118 were fatal, constituting three percent of the total figure.
To address the growing need for safe workplaces, Kenya has enacted and implemented legislation and guidelines to protect the welfare of its workforce. These include the Employment Act of 2007, the Occupational Safety and Health Act of 2007, and the Work Injury Benefits Act (WIBA) which was also enacted in 2007. The WIBA Act, which took over from the repealed Workmen’s Compensation Act, serves as a vital shield, protecting employees from the financial and emotional devastation accompanying work-related injuries and illnesses.
Under this law, all employers must obtain and maintain an insurance policy with an approved insurer for their employees. This ensures that in case an employee is injured at work or suffers an ailment as a result of their working conditions, they are eligible to receive compensation for the same. This makes WIBA a compulsory insurance product for employers, reassuring employees that they are protected from the risk of financial hardships that can arise from workplace incidents.
According to the 2022 Association of Kenya Insurers (AKI) Industry Report, insurance covers arising from the Work Injury Benefits Act (WIBA) recorded a Gross Written Premium (which is the total amount of money an insurer collects from its customers in exchange for insurance policies) of KES 13.3 billion in 2022, a 9.85% increase compared to KES 12.15 billion in 2021.
How WIBA Works
WIBA covers a wide range of benefits, including medical expenses, wage replacement, disability payments, and death benefits. This comprehensive coverage ensures that workers and their families are not left to bear the financial burden alone. It ensures that workers receive the necessary support to recover and rebuild their lives by mandating employers to provide insurance coverage.
For one to benefit from WIBA, employees must first report any work-related injury or illness to their respective employer upon its occurrence. In turn, employers are mandated by law to report these cases to their respective insurance provider within seven days of notice, who will initiate the process of assessing the report. Once the respective report is validated, the injured employee is cleared to file a compensation claim within 12 months of the date of the accident. The sum of the compensation is calculated based on the severity of the injury, potential loss of income to be incurred, and other related factors.
WIBA plays a pivotal role in Kenya’s labour framework by serving to protect employees from the financial repercussions of work-related injuries and illnesses. WIBA advocates for various forms of compensation to employees. One of the many benefits is coverage of medical treatment costs resulting from workplace injuries or illnesses. This includes doctor consultations, hospital visits, and medication expenses, which ensures employees receive the necessary quality healthcare without financial strain or difficulty.
Secondly, if an employee is temporarily unable to work due to an injury, they are compensated for their lost wages. This is usually paid out as a percentage of the employee’s earnings during their recovery period. In the case an injury results in permanent disability, WIBA lobbies for compensation based on the degree of disability. The level of compensation is calculated through the use of a predefined scale, ensuring fairness and adequate financial support.
In the event of a work-related death, WIBA provides legislation that guarantees compensation to the dependents of the deceased employee. This compensation helps the family cope with the loss of income following the death of their primary breadwinner. It also caters for funeral expenses for employees who die as a result of a workplace injury.
Another benefit of WIBA is how it pushes for the coverage of diseases contracted as a direct result of an employee’s work environment. Employees suffering from such occupational diseases are entitled to the same benefits as those injured through work-based accidents.
Workplace injuries and illnesses can significantly impede an employee’s ability to earn and live off their respective income, as the costs associated with medical treatment or disability can be overwhelming. WIBA comes in to ensure that employees do not bear the full brunt of these incidents alone and instead comes in to provide a safety net compelling financial support from their employers when it is needed the most.
The success of WIBA is reliant on the continuous collaboration between employers, employees, and the government. By ensuring compliance with WIBA and leveraging the expertise of insurance underwriters, businesses can safeguard their employees and create safer, healthier workplaces for all.
Dominic Kamonjo is General Manager Retail and SME at Minet Kenya.