Employers could potentially face substantial fines amounting to millions of shillings for violating the proposed Social Health Insurance Bill.

The bill was introduced by President William Ruto’s government and stands a great possibility of being approved.

This bill has been brought up in Parliament by National Assembly Majority Leader Kimani Ichung’wah.

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What does the bill outline?

Additionally, the bill offers strict penalties for various infractions against would-be law.

Among its proposals, it suggests a penalty of Ksh1 million for employers who fail to promptly remit their employees’ contributions to the Health Insurance Fund.

Furthermore, employers found guilty of excessively deducting from their employees’ salaries may also be liable for a fine of Ksh1 million.

Additionally, those convicted of mishandling their employees’ deductions could face imprisonment for up to three years.

The bill proposes a Ksh1 million fine or a one-year prison term for such offenders.

It states that anyone who willingly provides false statements, representations, documents, or information for the purpose of securing financial benefits commits an offence.

Consequences for employers

In addition to employers, hospitals will also be subject to huge fines for misconduct.

For instance, the bill proposes a Ksh500,000 fine for cases in which doctors manipulate documents to inflate their reimbursements from the Health Insurance Fund.

Moreover, fines may include suspension from and removal from the Fund’s programs.

Similarly, Kenyans involved in identity impersonation to gain financial benefits will face fines.

The fines will be in the form of a Ksh1 million fine or a year in jail term.

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Consequences for Civil Servants

Consequently, the bill also addresses the misappropriation of funds from the Kenyan citizens.

Government officials convicted of misappropriation could face significant fines of up to Ksh10 million.

It stipulates that anyone misappropriating funds or assets of the Fund, or assisting others in doing so, will be subject to imprisonment for a maximum of five years, a fine not exceeding Ksh10 million, or both.

In brief, As the bill aims to reorganize the healthcare sector, it is currently in its second reading stage.

The bill is set for debate in the coming days, during which Members of Parliament will have the opportunity to propose amendments to it.

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