The National Hospital Insurance Fund (NHIF) is a government-owned organization managed by the Ministry of Health in Kenya. NHIF was established in 1966, and it has been responsible for insuring Kenyans who have enrolled in the program. Any Kenyan Citizen working in the Public and Private sectors is required by law to be registered for NHIF. Every month, all Workers contribute a certain amount of money as governed by the New NHIF Rates for 2024. As you continue contributing every month as an NHIF member, you will be able to benefit from all NHIF services, which cater to Medications, maternity care, Prvenetive care, and inpatient and outpatient care
NHIF memberships are meant for more than salaried people, as even self-employed people can join. Every year, NHIF tends to review its NHIF rates. For 2024, NHIF has already announced new Rates to ensure that the fund is financially sustainable for the year financial year 2024. In this article, we will be telling you everything that you need to understand about the New NHIF Rates For 2024
Overview of New NHIF Rates for 2024
In a notable shift from previous years, NHIF has proposed a uniform contribution rate for all members, irrespective of their income bracket. A flat rate of 2.75% of the gross monthly income will now be the standard, replacing the previous graduated scale, which ranged from Sh150 to Sh1,700. This move is designed to streamline the process, making it easier for members to understand and comply with their contributions.
With these changes, the maximum monthly contribution for higher-income earners is capped at Sh5,000, while the minimum for self-employed individuals is set at Sh300. This aims to balance the financial load across different income groups fairly.
Here is an Overview Of All The New NHIF Rates in 2024:
| Gross Monthly Salary (Ksh) | NHIF Contribution (2.75% of Monthly Salary) |
|---|---|
| 0 – 10,909 | 300 (Minimum Contribution) |
| 10,910 – 18,181 | 300 – 500 (Scales with income) |
| 18,182 – 59,999 | 500 – 1,649.97 (2.75% of Monthly Salary) |
| 60,000 – 99,999 | 1,650 – 2,749.97 (2.75% of Monthly Salary) |
| 100,000 – 181,818 | 2,750 – 4,999.99 (2.75% of Monthly Salary) |
| 181,819 and above | 5,000 (Maximum Contribution) |
It’s important to note the actual contribution for those earning between Ksh. 10,910 and Ksh. 18,181 will vary because the percentage calculation might suggest a figure lower than Ksh. 300, the minimum set contribution is Ksh. 300. Conversely, for high earners (above Ksh. 181,819), the contribution is capped at Ksh. 5,000, even though 2.75% of their salary would be higher than this amount.
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EXPERT TIP:
Please note these calculations are based on the assumption that the new rate is a flat 2.75% across all income brackets, with specific caps at the minimum and maximum, as mentioned. Always confirm with the latest NHIF guidelines or official announcements to ensure accuracy.
NHIF Rates for Salaried Individuals
All salaried individuals, regardless of their income bracket, will now contribute to NHIF based on a simplified and more equitable model.
The new system institutes a uniform contribution rate of 2.75% of one’s gross monthly salary. This adjustment ensures fairness, making healthcare contributions proportional to income.
Example Calculations
To illustrate, a salaried worker earning Ksh. 20,000 per month would calculate their NHIF contribution as follows:
- Gross Salary×Contribution Rate=NHIF ContributionGross Salary×Contribution Rate=NHIF Contribution
- 20,000×2.75%=550Ksh.20,000×2.75%=Ksh.550
This contribution ensures that each member pays a fair share relative to their earnings, thereby maintaining the integrity and sustainability of the health fund.
NHIF Rates for the Self-Employed
NHIF membership is open to all Kenyans regardless of their background status. For those under the age of 18 or for those Kenyans without a Job, NHIF only asks for a flat rate of Ksh 500 each month. That adds up to Ksh 6,000 for the whole year. This has stayed the same from before, but it’s important because it helps everyone get the medical help they need, no matter what kind of job they have.
Calculating Your NHIF Contributions
Calculating your contributions under the new system is straightforward. Here’s an example: if your monthly salary is Ksh. 20,000, calculate 2.75% of this amount, which equates to Ksh. 550. This method ensures that the contribution is proportionate to your income, making the system more equitable. However, For those earning above Ksh. 182,000, the contribution is capped at Ksh. 5,000, preventing excessively high charges. Conversely, if you earn less than Ksh. 10,916, the minimum donation of Ksh. 300 applies.
Expert tip:
There are tools on the internet called calculators that can help you. You type in how much money you make, and the calculator tells you how much you need to give to NHIF. Some examples of these tools include :
1.)Faidihr(LINK)
2.) Stawihr (LINK)
How To Pay For NHIF Contributions
NHIF Provides several ways that you can use to pay your Monthly contributions. Let us look at this in various ways:
Option 1: Using M-PESA
- Access the M-Pesa menu on your SIM Toolkit.
- Select ‘Lipa na M-PESA’ then ‘Pay Bill’.
- Enter the business number 200222.
- Use your National ID number as the account number.
- Input the amount you wish to pay.
- Enter your M-PESA PIN and confirm the transaction.
Option 2: Using NHIF USSD Code
- Dial *126#.
- Select ‘Lipa Na Bonga’ and use 200222 as the PayBill number.
- Again, use your National ID number as the account number.
- Enter the payable amount and your M-PESA PIN to complete the transaction.
NHIF Benefits
The National Hospital Insurance Fund (NHIF) is a lifesaver to many Kenyans in medical situations requiring one to act very fast. When you are a member of NHIF, you are eligible to have access to all NHIF Benefits. These include:
- Inpatient and outpatient treatment
- Maternity care
- Dental care
- Optical care
- Emergency services
- Funeral expenses
- Chronic illness cover
- Mental health cover
- Cancer cover
- Kidney dialysis cover
NHIF Penalties for Late Contributions
If you fail to pay your NHIF Rates(Contributions), you will be subjected to NHIF penalties. Usually, a late payment penalty of 10% of your monthly contribution will be charged if you do not pay your NHIF contributions on or before the 9th of the following month. For example, if your monthly contribution is KES 500, you will be charged a late payment penalty of KES 50 if you do not pay by the 9th of the following month. In addition to late fees, another NHIF penalty you can face is the Reactivation fee. This will only apply if your NHIF cover has lapsed for more than 12 months; you must pay a reactivation fee of KES 1,500 to reinstate your cover.
To Pay for NHIF Penalities via Mpesa:
- On your Phone, get to M-PESA
- Select PayBill
- Enter the NHIF business number, which is 200222
- For Account Number: Enter Your ID number followed by Letter Y, i.e., 30489856Y
- Enter the Penalty Amount
- Enter Your M-PESA PIN and send
NHIF contacts
If you have any questions or comments about the NHIF Rates, you can directly reach out to NHIF today via the official channels as shown below:
- Address: Bandari Plaza 1st floor, Woodvale Groove Road, Westlands, Nairobi
- Email: customercare@nhif.or.ke
- Phone number: 0800 720 601
