Public Sector Unions Announce Agreement on Comprehensive Medical Insurance Scheme

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Public Sector Unions Announce Agreement on Comprehensive Medical Insurance Scheme
By Mical Imbukwa

Public sector unions representing workers in various fields have reached an agreement with the government to establish a long-term solution for the medical insurance needs of public servants. The deal comes after months of negotiations and a looming nationwide strike.

On October 8, 2024, unions representing public sector employees issued a joint strike notice, demanding, among other things, the restoration of a comprehensive medical insurance cover for all public servants. This demand followed the lapse of the civil servants’ insurance scheme, as outlined in the Social Health Authority (SHA) transition clause 5.

In response, the State Department of Public Services and the SHA extended the existing medical cover until November 21, 2024, and formed a high-level team to address the issue. The team included representatives from the Head of Public Service, Treasury, Ministry of Public Service, Office of the Attorney General, Ministry of Health, and public sector unions.

Agreement Reached

On October 23, 2024, the negotiations culminated in the signing of an agreement to establish the Public Officers’ Medical Scheme Fund. This fund ensures the continuation of comprehensive medical insurance cover for public servants beyond November 21, 2024, and effectively suspends the planned strike action.

Under the new arrangement, the benefits package will remain unchanged and will be accessible to all public servants. The government also committed to discontinue procuring private insurance for public servants.

Instead, the scheme will be funded by the medical allowances previously forfeited by public servants in 2011 to create a pooled fund for comprehensive insurance coverage. The fund will be managed by the SHA, ensuring it remains separate from contributions made by other Kenyans to the Social Health Insurance Fund (SHIF).

“This agreement provides peace of mind to our members, enabling them to serve the nation effectively,” the unions said in a joint statement.

Call for Public Participation

Draft regulations for the management of the new scheme have been released by the Treasury for public input. Public sector unions have urged the six million public servants and their dependents to review the regulations and submit feedback through their respective unions.

The union leaders reiterated the importance of the medical scheme, emphasizing that it is the responsibility of employers to ensure adequate medical provisions for employees during illness.

The agreement was endorsed by leaders from several unions, including the Kenya Medical Practitioners and Dentists Union, Kenya Union of Clinical Officers, Kenya National Union of Nurses, and the Union of Kenya Civil Servants, among others.

This marks a significant milestone in securing the health and well-being of public servants, reinforcing their ability to serve the nation effectively. Public participation in the proposed regulations is expected to further refine the scheme and ensure its long-term success.

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