Health Ministry Abolishes Taxes on Insurance for Select Kenyans

Health Cabinet Secretary Susan Nakhumicha Wafula on May 1, announced that the government had in the next budget provided tax exemption on medical insurance for retired employees.

In an interview on the sidelines of Labour Day celebrations at Uhuru Gardens, Nakhumicha stated that the exemption would also apply to companies manufacturing vaccines and biopharmaceuticals.

The CS explained that the move was a significant step towards safeguarding the well-being of our retired workforce and promoting the production of life-saving healthcare products.

“We have put in the palace a tax exemption for payment of interest for those who have retired which means that their payment for medical insurance will be exempted from interest.

Health CS Susan Nakhumicha speaking during familiarisation engagement with the National Assembly Departmental Committee on Health on Saturday, April 15, 2023.

Photo

Ministry of Health

“We have also exempted interest for companies that are going to manufacture vaccines and pharmaceuticals. Anybody who wants to manufacture the vaccines is exempted from some sort of interest on their royalties,” the CS stated

In addition, Nakhumicha revealed that the government had plans in place to operationalise an advisory council to address the concerns of healthcare workers in Kenya and submit recommendations.

“The president stated that he will not go back on the benefits of the devolution and will ensure that healthcare workers get their salaries.

“For now, as the Ministry of Health we are operationalising the Kenya Health Human Resource Advisory Council that will deal with the issues affecting healthcare workers and submit recommendations,” the CS noted. 

On Friday, April 14, healthcare workers across the country announced that they would down their tools over delayed March salaries. 

They noted that their woes had become unbearable since they, too, had bills to pay and families to take care of.

“Occasional delays in salary payment have left us in a difficult financial situation. As a result, we are unable to meet our daily needs, including transportation, food, and accommodation expenses,” they noted in a statement. 

The unions, pleaded with President Ruto to urgently address their demands to avert the looming go-slow that may spiral into a full-blown strike.

Kenya Medical Practitioners, Pharmacists and Dentists Union (KMPDU) Secretary-General Dr Davji Bhinji Atella (Centre) flanked by other union members on October 15, 2022.

Photo/KMPDU