Cabinet office tops NHIF rent defaulters

The Cabinet Affairs office tops rent defaulters in property owned by the National Health Insurance Fund (NHIF), accounting for 13.4 per cent of the total Sh178.4 million owed to the State agency.

A report by the fund showed that the Cabinet Affairs office had clocked Sh23.9 million in rent arrears as of June 30, 2022, for space occupied within the main NHIF building in Nairobi’s community area.

The bulk of debt by the Cabinet Office (Sh17.97m) is more than 91 days old while the rest falls within the 61-90 days window.
Other big rent defaulters on NHIF property include the HIV & Aids Tribunal (Sh16.5m), Ministry of Environment and Forestry (Sh16.01m), Essence Ltd (Sh14.49m), National Social & Economic Council(Sh9.19m) and the Presidency Sh9.11m.

“Rental income earned as at June 30, 2021, was Sh320,471,130 against an annual target of Sh349,491,108. The performance is eight percent below target attributed to the delay in payment of rent by government institutions” NHIF said.

By June 30, 2022, outstanding arrears amounted to Sh 178.8 million, a sharp rise compared to a similar period a year ago.

“Total arrears as of June 30, 2021, was Sh109.5 million. The arrears position increased by 63 per cent by the end of June 2022. This is attributed to the delay in rent payment by government institutions” the fund further said.
Meanwhile, the NHIF recorded a 43 per cent income growth to Sh82.6 billion in the financial year ended June 2022, buoyed by enhanced schemes and sponsored programmes with private hospitals goggling the bulk of claims.

This was nevertheless below an actual target of Sh90.5 million for the period and compared to the Sh60 billion realised in a similar period of the 2020/2021 fiscal year.

NHIF’s results for the period show that contribution for the year to June 2022 stood at Sh41billion, up from Sh 37.4 billion the previous year with the national scheme raking in Sh34.4 billion while the collections from statutory contributions schemes netted Sh6.9 billion.

“However, this performance was below target by 15 per cent (Sh6.97 billion). Net contributions received was an achievement of 82 per cent at Sh 34.37 billion (excluding statutory contributions for members with enhanced covers)” NHIF said about the national cover.

The national scheme dubbed “supacover” is the primary health insurance cover for all members and their declared dependants as provided in the amended NHIF Act of 2022. Members enjoy inpatient, and outpatient services and special benefits packages.

The supercover comes in three segments including one in which employed or salaried members from both the private and the public sector make a monthly contribution between Sh150 and Sh 1,700 based on their monthly income.

This cover also caters to the self-employed who pay a monthly contribution of Sh500. Additionally, it covers members in the informal sector who are paid for by sponsors or donors.