Government to Deduct Sh17 Daily from Hustler Fund for NHIF

Customers of the Hustler Fund would have Sh17 deducted daily from the National Health Insurance Fund.

Due to the deductions from hustlers’ loans, a medical insurance product will be created as a result of this action.

In order to grow the population covered by the NHIF, the government announced intentions to reorganize the program from an individual contributory scheme to a household contribution model last year.

This is a recent development intended to boost funding for the state health financing program, which took a beating during the Covid-19 epidemic period.

Principal Secretary of the State Department of SMEs Susan Mang’eni told one daily that the new plan will ensure small businesses don’t utilise their capital for medical expenses.

“Our SMEs cannot differentiate from personal and business finances. They use the capital for medication Sickness is the major disruptor of SMEs at infancy,” PS State Department of SMEs Susan Mang’eni.

The strategy will be looking to capitalize on the hustling funds market, which has expanded since its debut in November of last year.

Currently, 7 million Kenyans borrow money and repay it every day on average.

19.7 million people have applied for hustler loans, and 62% of the Sh26 billion hustler fund that was shut down has been repaid.

The administration of President William Ruto has been keen to increase financing for the backed by the state health program.

The lowest donors to the national healthcare program currently pay Sh500 per month, mostly coming from the informal sector, while those in the formal sector pay between Sh150 and Sh1,700 per month, depending on their pay levels.

In an effort to attract more Kenyans to the program in order to achieve universal healthcare for all, Ruto hinted last week at lowering the amount that Kenyans presently pay.

In the proposal, the president had hinted that Kenyans will pay Sh300 per month to the NHIF down from the current Sh500 for the lowest band.

“Through this even the hawkers will now be able to access high-premium insurance and hospitals. We have partnered with financial partners and we are coming up with a credit score based on your personal character,” added Mang’eni.

According to NHIF data for the fiscal year that ended in June 2022, the Covid-19 pandemic, which made many individuals more susceptible to other diseases, is what caused membership to increase from 13.94 million to 15.4 million.