The National Hospital Insurance Fund Amendment Act No 1of 2022 - as Plain Text by MWakili

NATIONAL COUNCIL FOR LAV/ REPORTING SPt LC lALI SSU E LIBRARY Kenya Gazette Supplement No.

2 (Acts No.

1) REPUBLIC OF KENYA KENYA GAZETTE SUPPLEMENT ACTS, 2022 NAIROBI, 14th January, 2022 CONTENT Act PAGE 1 2022 The National Hospital Insurance Fund (Amendment) Act, NATIONAL COUNCIL FOa LA'4^ R5s 31 JAN 2022 s, i 1C0 ( P.O.Box 1,44o- NAIRG;J.

, TEL: 271923) FAX: PRINTED AND PUBLISHED BY THE GOVERNMENT PRINTER, NAIROBI THE NATIONAL HOSPITAL INSURANCE FUND (AMENDMENT) ACT No.

1 of 2022 Date of Assent: 10th January, 2022 Date of Commencement: 28th January, 2022 AN ACT of Parlimnent to amend the National Hospital I nsurance Fund Act, 1998 ENACTED by the Parliament of Kenya, as follows short title.

1.

This Act may be cited as the National Hospital Insurance Fund (Amendment) Act, 2021.

Amendment of the 2.

The National Hospital Insurance Fund Act, in this Act referred to as the pnncipal Act is amended by ofi998.

new long deleting die long title and inserting the following title- An Act of Parliament to provide for the establishment the of the National Heahh Insurance Fund; to establish National Health Insurance Fund Management Board; to provide for mechanisms of contributions to and the p^/ment of benefits out of the Fund; and for connected > 9 purposes Amendment of the 3.

The principal Act is amended in the title by deleting title to No.

9 of 1998.

the word Hospital and substituting therefor the word Health.

Amendment of 4^ Section 1 of the principal Act is amended in section section 1 of No.

9 therefor of 1998.

1 by deleting the word Hospital and substituting die w ord H ealth.

Amendment of 5.

Section 2 of the principal Act is amended section 2 of No.

9 of 1998.

(a) in the definition of Board by deleting the word Hospital and substituting therefor the word Health; (b) by deleting the definition of card ; fc) by deleting the definition of child and substituting therefor the following new definition u child means a child of a contributor including a posthumous child, a stepchild, an 2 No.

l 2022: National Hospital Insurance Fund (Amendment) adopted child and any child to whom the contri butor stands in loco parentis, and who has not attained the age of eighteen years; (d) by deleting the definition of the term employer and substituting therefor the following new definition- employer means a person^ national government or national govern ment entity, county government or county government entity, fi rm, corporation or company who or which has entered into a contract of service with an individual; (e) in the defi nition of Fund by deleting the word Hospital and substituting therefor the word Health; (f) by deleting the defi nition of hospital; (g) by deleting the defi nition of Minister; (h) by deleting the defi nition of register; (i) by deleting the defi nition of stamp; 0) by deleting the defi nition of inspector and substituting therefo r the following new defi nition inspector means a person appointed to carry out an inspection under section 32; <k;) by inserting the following new defi nitions in proper alphabetical sequence- accreditation means the fo rmal recognition of a health care provider by the Board; benefi ciary means a person who (a) has not attained the age of twenty-one years, has no income of his own and is living with the contributor; is (b) has not attained the age of twenty-fi ve years, undergoing a full-time course of education at a university, college, school or other educational establishment or serving under articles or an indenture with a view to qualifying in a trade or 3 2022 National Hospital Insurance Fund (Amendment) profession and is not in receipt of any income other than a scholarship, Wsary or other similar grant or award; (c) is a person with disability and is wholly dependent on and living with the contributor; (d) is a spouse; or (e) is a contributor; means the Cabinet Cabinet Secretary' Secretary for the time being responsible for matters relating to health; contracting means the entering into a formal agreement with an empaneled health care provider for purposes of provision of services; empanelment means enrolment of a health care provider into the list of health care service providers published in the Gazette', health care provider means the whole or part of a public or private institution, building or place, duly registered healthcare professional, whether for profit or not, that is operated or designed to provide in-patient or out-patient treatment, diagnostic or therapeutic interventions, nursing, rehabilitative, palliative, convalescent, preventative, promotive or other health service; indigent means a person who is poor and needy to the extent that the person cannot meet their basic necessities of life; risk spreading means the transfer, sharing or distribution of the risk insured as between one or more insurance companies or other providers with a view to reducing the fi nancial cost in the eventual happening of the insured event hereby referred as a loss for special, enhanced or negotiated scheme; vulnerable person means a person who is in need of special care, support or protection, including the orphaned and vulnerable children, widows or widowers, person with disability, elderly persons or indigent due to a risk of abuse or neglect and who has been identifi ed as such by the relevant government body; 4 No.

l 2022 National Hospital Insurance Fund (Amendment) Amendment of 6.

Section 3 of the principal Act is amended section 3 of No.

9 of 1998.

(a) in subsection (1), by deleting the word Hospital and substituting therefor the word Health; and (b) in subsection (2), by deleting paragraph (a) and new substituting therefor the following paragraph- (a) into the Fund (i) contributions under section 15; (ii) such monies as may be appropriated by the National Assembly, for indigent and vulnerable persons; (iii) gifts, grants or donations; (iv) funds fr om the national government, county governments and their respective entities for the administration of the compulsory public service employees insurance benefit scheme or an employer who is not a national government, a county government or their respective entities, f or the administration of employee benefits; and (v) contributions fr om post retirement funds for provision of medical cover to retired employees, where the contributor has elected to do so.

Amendment of 7.

Section 4 of the principal Act is amended by section 4 of No.

9 deleting subsection (1) and substituting therefor the of 1998.

following new subsections (1) The management of the Fund shall vest in a Board which shall consist of 5 2022 National Hospital Insurance Fund (Amendment) (a) a Chairperson appointed by the President by virtue of his or her knowledge and experience in matters relating to insurance, financial management, economics, health or business administration; the (b) the Principal Secretary in Ministry for the time being responsible for matters relating to health or a representative appointed in writing; (c) the Principal Secretaty in the Ministry for the time being responsible for matters relating to finance or a representative appointed in writing; (d) one person nominated by the Kenya Medical A ssociation; (e) one person nominated by the Federation of Kenya Employers; (f) one person nominated by the Central Organization of Trade Unions; (g) two persons, not being Govern ors, nominated by the Council of County Governors; (h) two persons, not being public officers, appointed by the Cabinet Secretary; and (i) the Chief Executive Officer, who shall be an ex-offi cio member of the Board.

(lA) The persons nominated or appointed under paragraphs (e), (f), (g) and (h) shall have knowledge and experience in matters relating to finance, insurance, information, communication and public health, business technology, law, management, audit, economics or any other relevant f ield.

(IB) The nominating body under paragraph (f) shall afford equal opportunity to men and women.

6 No.

l 2022 National Hospital Insurance Fund (Amendment) youth, persons with disabilities and minorities and marginalized groups and ensure regional balance.

(1C) The Cabinet Secretary responsible for matters relating to health shall publish the names of the persons the nominated under paragraphs (d), (e), (t) and (g) in Gazette." Amendment of 8.

Section 5(1) of the principal Act is amended- section 5 of No.9 of 1998.

(a) in paragraph (b) by deleting the words declared hospitals and substituting therefor the words empaneled health care providers; (b) by deleting paragraph (c) and substituting therefor the following new paragraph (c) in consultation with the respective regulatory bodies specified under section 60 of the Health Act, to set the criteria for the care empanelment and contracting of health providers for the purposes of this Act; (c) by deleting paragraph (g) and substituting therefor the following new paragraphs (g) to facilitate attainment of Universal Health Coverage with respect to health iin surance; as (h) to administer employee benefits provided under this Act on behalf of employers in respect of their employees; and (i) to perform such other functions asare conferred on it by this Act or any other written law; (d) in paragraph (f) by deleting the word Minister and substituting therefor the word Cabinet Secretary- and (e) by inserting the following new subsection immediately aft er subsection (1)- (2) The Board shall facilitate public participation and stakeholder engagement in the carrying out of its functions under this Act.

Amendment of 9.

Section 6 of the principal Act is amended- section 6 of No.

9 of 1998.

(a) in paragraph (a) by deleting the word Minister appearing in the proviso and substituting therefor the words Cabinet Secretary; and 7 2022 National Hospital Insurance Fund (Amendment) (b) by inserting the following new paragraph immediately aft er paragraph (a) (aa) to determine the contributions to be made by contributors to the Fund; 10.

The principal Act is amended by deleting section section 9 of No.

99 and substituting therefor the following new section of 1998.

Board, Remuneration of 9^ -phe chairman and members of the members of the Other than the chief executive officer, shall be Board.

paid out of the moneys of the Fund such sitting allowances or other remuneration as the Board may, in consultation with the Salaries and Remuneration Commission, determine.

Repeal and 11.

The principal Act is amended by deleting section replacement of section 10 of No.

10 and substituting therefor the following new section 9 of 1998.

Chief 10.

(1) There shall be a chief executive executive officer of the Fund who shall be appointed by offi cer.

the Board, through a competitive process, on such terms and conditions as the Board may, with the advice of the Salaries and Remuneration Commission, determine.

(2) A person is qualified for appointment as a chief executive officer if the person (a) has at least a Masters degree from a university recognized in Kenya; (b) has at least ten years' experience at a senior management level with skills in health i nsurance, health fi nancing, health fi nancial management.

economics, healthcare, administration, law or business administration; and (c) meets the requirements of Chapter Six of the Constitution.

(3) The chief executive officer shall, subject to the directions of the Board, be responsible for the day to day management of the affairs and staff of the Board.

(4) The chief executive officer shall serve for a term of three years and shall be eligible for 8 No.

l 2022 National Hospital Insurance Fund (Amendment) re-appointment for a further and final term of three years.

(5) The chief executive officer shall be an ex officio member of the Board.

I nsertion of new 12.

The principal Act is amended by inserting the section l OA into following new section immediately after section 10 No.

9 of 1998.

Corporation l OA.

(1) The Board shall competitively Secretary recruit a person qualified in terms of the law governing the practice of certified secretaries in Kenya, to serve as the Corporation Secretary of the Board.

(2) A person is qualified for appointment as a corporation secretary under subsection (1) if the person has been a member of the Institute of Certified Public Secretaries for at least ten years and the person is in good standing with the Institute.

(3) The Corporation Secretary shall be the Secretary to the Board and shall (a) in consultation with the Chairperson of the Board, i ssue notices for meetings of the Board; (b) keep, in custody, the records of the deliberations, decisions and resolutions of the Board; (c) transmit decisions and resolutions of the Board to the Chief Executive Officer for execution, implementation and other relevant action; (d) provide guidance to the Board on their duties and responsibilities on matters relating to governance; and (e) perform such other duties as the Board may direct.

Amendment of 13.

Section 11 of the principal Act is amended by section 11 of No.

and deleting the words officers, inspectors and servants 9 of 1998.

substituting therefor the word staff.

9 National Hospital Insurance Fund (Amendment) 2022 Repeal and 14.

The pri ncipal Act is amended by deleting section replacement of section 12 of No.9 12 and substituting therefor the following new section of 1998.

Common seal of 12.

(1) There shall be a common seal of the Board.

the Board which shall be kept in the custody of the Corporation Secretary and shall not be used except on the direction of the Board.

(2) The affixing of the common seal of the Board shall be authenticated by the signatures of the Chairperson and the Chief Executive Officer and any document required by law to be made under seal and all decisions of the Board may be authenticated by the signatures of the Chairperson and the Chief Executive Officer.

(3) The Board shall, in the absence of either the Chairperson or the Chief Executive Officer, in any particular matter, member to authenticate the nominate one seal of the Board on behalf of either the Chairperson or the Chief Executive Officer.

I nsertion of a new section 14A 15.

The principal Act is amended by inserting the i nto No.

9 of following new section immediately before section 15 1998.

under Part III Registration 14A.

(1) A person who has attained the as a member age of eighteen years and is not a of the Fund.

beneficiary shall register as a member of the Fund.

(2) The Cabinet Secretary may, m consultation with the Board, make regulations for the better carrying out of subsection (1).

Amendment 16.

Section 15 of the pri ncipal Act is amended of section 15 of No.

9 of 1998.

(a) by inserting the following new subsections immediately aft er subsection (1) (1A) Subject to this Act 10 No.

l 2022 National Hospital Insurance Fund (Amendment) (a) the national government shall be liable c.; asa contri butor to the Fund in respect of all public offi cers, state offi cers and employees working in the national govern ment and national government entities; (b) each county government shall be liable c: asa contri butor to the Fund in respect of all public offi cers, state offi cers and employees working in the county government and county government entities; and (c) any other employer shall be liable - - asa contributor to the Fund in respect of its employees, subject to paragraph (2)(e).

(IB) Subject to this Act, the national government shall be liable as a contri butor to the Fund on behalf of the indigent and vulnerable persons identifi ed as such by the relevant government body.; (b) m subsection (1), by deleting the word Minister appeanng in paragraph (c) and substituting therefor the word Cabinet Secretary; (c) in subsection (2), by (i) deleting paragraph (b) and substituting therefor the following new paragraph (b) for persons whose income is deri ved fi 'om self-employment (i) in the case of a contri butor who ISa sole benefi ciary; and (ii) in the case of a contri butor who is not a sole benefi ciary, a special contri bution at such respective rates as may be determined by the Board; (ii) inserting the following new paragraphs immediately aft er paragraph (b) 11 National Hospital Insurance Fund (Amendment) 2022 (c) in the case of an employer who is the national national government or a matching government entity, contribution, equal to that which their employee is liable to contribute under subsection (l)(c); (d) in the case of an employer who is the or county county govern ments a matching government entity, contribution, equal to that which their employee is liable to contribute under subsection (l)(c); (e) in the case of any other employer under a matching subsection ( lA)(c), contribution equal to that which their employee is liable to contribute under subsection (l)(c), subject to subsection (2A); and (f) in the case of the national government under subsection (IB), a special contribution, as the Board, in consultation with the Cabinet Secretary, may determine, (d) by inserting the following new subsections immediately aft er subsection (2)- (2A) An employer other than the national government or county governments or their entities liable to pay a matching contribution under section 15 may be exempted fr om paying such matching contribution, if that employer has procured a private health insurance cover for its employees and the benefits are equal to or better than the benefits that the employees are entitled to under this Act.

(2B) An employer who intends to be exempted under subsection (2A) shall submit an application to the Board in writing together with a certificate issued by the Insurance Regulatory Authority to that employer 12 No.

l National Hospital Insurance Fund (Amendment) 2022 (a) certify ing that the respective a ernployees have been insured by private health insurer; (b) specify ing the details of the cover and the benefits; and (c) specify ing the validity period of the private health insurance cover.

(2C) The Board (a) shall determine an application under subsection (2B) within thirty days of receipt; and (b) may grant the exemption if the Board is satisfi ed that the private health insurance is adequate, (e) by deleting subsection (3) and inserting the lollowmg new subsection (3) A contribution under subsection (2)(a) and (b) shall be at such rate, depending on the persons total income, as the Board, in consultation with the Cabinet Secretary rnav determine.

^ (f) by inserting the following new subsection immediately aft er subsection (3) Subject to such guidelines as the Board may, fr om time to time issue, a person who wishes to receive an enhanced benefi t under section 22(3) may make additional voluntary contributions to the Scheme.

(g) in subsection (4) by deleting the word M inister and substituting therefor the word Cabinet Secretary; (h) by deleting subsection (5) and substituting therefor the tollowmg new subsection (5) The contributions made to the Fund under subsection (2) shall be mandatory, new (i) by inserting the following subsection immediately aft er subsection (5) 13 2022 National Hospital Insurance Fund (Amendment) (6) The Cabinet Secretary shall, in consultation with the Board, make regulations for the better canying out of this section.

Amendment of 17.

Section 16 of the principal Act is amended section ! 6 of No.

9 of 1998.

(a) in the marginal note by inserting the word and matching immediately after the word standard; (b) by inserting a new subsection immediately after subsection (1) (lA) A person liable to pay a matching contribution under section 15 shall pay such contribution in their capacity as an employer and shall not deduct such contribution f rom the salary or other remuneration of the employee , (c) in subsection (2) by the words and matching (i) i nserting immediately after the word standard; (ii) deleting paragraph (c); (d) in subsection (3) by (i) deleting paragraph (b); (ii) deleting paragraph (c); (e) by deleting subsection (4) and substituting therefor the following new subsection (4) No sum deducted from the salary or other remuneration of an employee by his or her employer in accordance with the provisions of this Act shall be recoverable from the employer by that person once the contribution has been remitted to the Fund , (f) in subsection (6) (i) by inserting the words or matching immediately after the word standard appearing in paragraph (a); 14 No.

l 2022 National Hospital Insurance Fund (Amendment) (ii) by deleting the words fifty thousand and substituting therefor the words fi ve hundred thousand in the closing statement; Amendment of 18.

Section 18 of the principal Act is amended seetion 18 of No.

9 of 1998.

(a) in the marginal note by inserting the words and matching immediately after the word standard; (b) by deleting subsection (1) and substituting therefor the following new subsection (1) If a standard or matching contribution which a person is liable to remit under section 16, has not been remitted by the day on which the payment of the standard or matching contribution is due, the person shall be liable to pay a penalty equal to the lending rate of i nterest, of the amount of the contribution, as may published by the Central Bank of Kenya from time to time, (c) in subsection (2> (i) by deleting paragraph (a) and substituting therefor the following new paragraph (a) that employer shall be liable to pay the penalty prescribed in subsection (1) and pay the costs incurred by the employee that would have been covered by the Fund when seeking treatment from a contracted health care provider during the period when the contribution is due; (ii) by inserting the following new paragraph immediately after paragraph (b) (c) where an employer is a national government, county government or a national or county govern ment entity, the respective accounting offi cer shall be personally liable for the costs that would have been covered by the Fund and incurred by the employee when seeking treatment from a contracted 15 2022 National Hospital Insurance Fund (Amendment) health care provider during the period when the contribution is due.

in subsection (3), by inserting the words and (d) matching immediately after the word standard.

Amendment of 19.

Section 19 of the principal Act is amended section 19 of No.

9 of 1998.

(a) in subsection (2) by deleting the word five times appearing immediately after the words penalty equal to and substituting therefor the words ten per cent of ; and (b) by deleting subsection (3).

Amendment of 20.

Section 20 of the principal Act is amended by section 20 of No.

9 of 1998.

inserting the words by unemployed persons immediately after the words voluntary contributions.

Repeal and 21.

The principal Act is amended by deleting section replacement of section 21 of 21 and substituting therefor the following new section No.

9 of 1998.

Mode of 21.

(1) The Board shall prescribe the i dentification of mode of identification of a beneficiary, beneficiaries and payment of taking into account the existing legal contributions.

framework for national registration.

(2) The Board may require a person who is liable to remit a payment for a standard and matching contribution under section 16 to f urnish such information or particulars, or to produce such documents, as the Board deems necessary for that purpose.

(3) A person who f al se (a) knowingly makes any statement relating to a matter affecting his or her liability to remit a standard or matching contribution under section 16; or (b) being required under subsection (2) to furnish information or particulars, or produce a document, refuses or neglects to do so without reasonable cause.

16 No.

l 2022 National Hospital Insurance Fund (Amendment) commits an offence and shall be liable on conviction to a fine not exceeding one million orto shillings impri sonment for a teim not exceeding twelve months, or to both.

(4) Evidence of the payment of contri bution shall be deemed conclusive if the person liable to pay the contri bution has (a) a record of remittance of the contributions; or (b) in the case of a standard contri bution, a record of the contri butors monthly pay-slip that the contri bution has been deducted from his or her salary.

of new 22.

The pri ncipal Act is amended by inserting the insertion following new section immediately after section 21- No!?o"fT998"* Establishment of a 21A.

The Board shall cause to be centralized healthcare provider management developed a centralized healthcare system.

provider management system.

(2) The centralized healthcare provider management system shall be installed and used by all empaneled providers for the purpose of management of claims, payments and data collection.

(3) The Board may publish guidelines on the use of the centralized healthcare provider management system by empaneled and contracted health care providers.

Amendment of 23.

Section 22 of the pri ncipal Act is amended by section 22 of No.

9 of 1998.

the (a) deleting subsection (1) and substituting therefor following new subsection (1) The Board shall pay from the Fund, a benefit to an empaneled or eontracted health care provider for an expense incurred by the 17 National Hospital Insurance Fund (Amendment) 2022 provider, for the provision of health care services through the centralized healthcare provider management, to the number of beneficiaries determined by the Board.

(b) deleting subsection (2); the (c) deleting subsection (3) and substituting therefor following new subsections (3) The Board shall, in consultation with the Cabinet Secretary, prescribe benefits payable from the Fund including benefits available with respect to emergency treatment for (a) primary angioplasty; (b) thrombolysis; (c) thrombolysis and rescue angioplasty; or (d) such other treatment as the Board may determine.

(3A) The benefits payable from the Fund shall be subject to such limits, and conditions as the Board may prescribe in regulations.

(3B) The Board shall determine and approve the applicable tariffs payable to the Fund under section 15(3A) and payable out of the Fund under subsection (1), to empaneled an contracted health care providers for incurred by the provider for the expense of healthcare services to the provision number of beneficiaries determined by the Board.

(3C) The Board shall, every two years, carry of the applicable tariffs payable to outareview the Fund under section 15 and payable out of the Fund to empaneled contracted health care providers.

use the approved risk (3D) The Board shall mechanism.

approved claims spreading administration services on benefits of outpatient, as inpatient and on employees benefits scheme provided for under sections 3(2)(a)(iv) and (v), 15,22 and 43.

18 No.

l National Hospital Insurance Fund (Amendment) 2022 (d) deleting subsection (4); new (e) inserting the following subsection immediately after subsection (4) (5) Where a beneficiary has a private health i nsurance cover- fa) the private health insurance shall be liable for payment up to the limits the beneficiary is covered; (b) the Fund shall pay the daily rebate, for inpatient; and (c) the Fund shall cover the outstanding bill where private insurance covers limits for various benefits have been exhausted subject to the Funds applicable limits with respect to each benefit.

of new 24.

The principal Act is amended by inserting the insertion following new section immediately after section 22 No*9"f Non-withdrawal of 22A.

(1) The Board shall not benefi ts.

withdraw the benefits of a person undergoing treatment for a chronic illness.

(2) The Board shall, in making f or regulations determining benefits under the Fund ensure that the Fund shall meet the costs of a contributor accessing inpatient services at care any empaneled health provider.

23 Repeal and 25.

The principal Act is amended by deleting section of and substituting therefor the following section replacement section 23 of No.

9 of 1998.

Statements of 23.

(1) The Board shall account.

upon request avail a statement of accounts to ia contributor, or a person who is liable to remit under section 16, with regard to their contributions.

(2) The Board shall make regulations for the better carrying out of the provisions of this section.

19 National Hospital Insurance Fund (Amendment) 2022 Repeal of section 24 of No.

9 of 26.

The pri ncipal Act is amended by repealing section 1998.

24.

Amendment of section 25 of No.

27.

Section 25 of the pri ncipal Act is amended 9 of 1998.

not (a) in subsection (1) by deleting the words a fine exceeding five hundred thousand shillings or to impri sonment for a term not exceeding twenty- four months, or to both and substituting therefor the words a fine not exceeding one million not shillings or to impri sonment for a term exceeding sixty months, or to both, (b) in subsection (2) (i) by deleting paragraph (b); and (ii) by deleting paragraph (c); (iii) by deleting the words a fine not exceeding five hundred thousand shillings appeari ng in the closing statement and substituting therefor the words a fine not exceeding one million shillings , (c) by deleting subsection (3); (d) in subsection (4) (i) by deleting the words Any declared hospital and substituting therefor the words A health care provider; (ii) by deleting paragraph (ii) and substituting therefor the following new paragraph (ii) removal from the register of empaneled and contracted health care providers, (e) by deleting subsection (5) and substituting with the following new subsections (5) The Board shall cause the name of every health care provider removed from the register under subsection (4)(ii) to be notified in the Gazette, at l east two newspapers of national circulation and at the official website of the Fund.

(5A) A health care provider which has been removed from the register under 20 No.

l 2022 National Hospital Insurance Fund (Amendment) section (4)(ii) shall not be entitled to receive any benefit from the Fund.

A mendment of 28.

Section 26 of the principal Act is amended section 26 of No.

9 of 1998.

(a) in the marginal note by deleting the words and stamps; (b) by deleting the word Minister appearing in the opening sentence and substituting therefor the word Cabinet Secretary; orto (c) in paragraph (a) by deleting the expression the issue of any stamps or to the issue or replacement of any cards under this Act; and (d) by inserting the following new paragraph immediately aft er paragraph (a)- (aa) the amount and rates of contributions payable by contributors into the Fund; (e) in paragraph (d) by deleting the words who have no dependants or who fulfi ll such other conditions or requirements as may be prescribed in cases of voluntary contributions.

Amendment of 29.

Section 27 of the principal Act is amended by section 27 of No.

deleting the word Minister appearing in the opening 9 of 1998.

sentence and substituting therefor the words Cabinet Secretary.

Amendment of 30.

Section 29 of the principal Act is amended section 29 of No.

9 of 1998.

(a) in subsection (1) by deleting the word Minister appearing in the opening sentence and substituting therefor the words Cabinet Secretary; (b) by inserting the following new subsections immediately aft er subsection (2) (3) For the purposes of Article 94 (6) of the Constitution (a) the purpose and objective of the delegation under this Act is to enable the Board to make regulations for better canying into effect the provisions of this Act; 21 National Hospital Insurance Fund (Amendment) 2022 (b) the authority of the Board to make regulations under this Act will be limited to bringing into effect the provisions of this Act and fulfilment of the objectives specified under this section.

(4) The principles and standards applicajjle to the delegated power referred to under this Act ^ e those found in No.

23 of 2013.

(a) the Statutory Instruments Act, 2013; Cap.

2.

(b) the Interpretation and General Provisions Act; (c) the general rules of international law as specified under Article 2(5) of the Constitution; and (d) any treaty and convention ratified by Kenya under Article 2(6) of the Constitution Amendment of 3K Section 30 of the principal Act is amended by section 30 of No.

9 of 1998.

(a) deleting the marginal note and substituting therefor the following new marginal note Empanelment of Healthcare Providers.

(b) deleting subsection <1) and substituting therefbr the following new subsection (1) The Board shall, in consultation with the relevant regulatory bodies specified No.

21 of 20 17.

under section 60 of the Health Act, publish in the Gazette, the list of empaneled health c ar e providers for the purposes of this AcfV (c) deleting subsection (2) substituting therefor the following new subsection (2) A notice in the Gazette und^r subsection (1) may be made subject to such conditions relating to the fees which may be charged by the health care provide to any contributor under this Act, includmg conditions as to the amount of such fees and 22 No.

l National Hospital Insurance Fund (Amendment) 2023 the requirement of the Boards consent to any variation thereof, as the Board considers it necessary and where any such conditions are made (a) the Board may publish such conditions in the Gazette orm such other manner considers it necessary; and (b) a health care provider shall not charge any fees to any contributor under this Act which is contrary to such condition, (d) deleting subsection (3) and substituting therefor the following new subsections (3) The Board may, at any time, revoke any empanelment under this section.

(4) Where the Board intends to revoke the empanelment of a health care provider under subsection (3), care the Board shall notify the health provider of the intended revocation, in writing, setting out the reasons for revocation of empanelment.

(5) A health care provider may, upon receiving a notification under subsection (4) submit a written response to the notification within seven days.

(e) inserting t^ following new subsections in proper chronological sequence (6) A health care provider whose empanelment has been revoked under this section may apply to the Board for the review of the revocation in the first instance and, if dissatisfied by the decision of the Board iqjon review, appeal to the High Court against the revocation.

23 Nati onal Hospital Insurance Fund (Amendment) 2022 (7) The Board shall cause the of every health care n am eIS provider whose empanelment revoked to be published in the Gazette and in at least three widi nationwide newspapers circulation.

Amendment of section 31 of No.

32.

Section 31 of the principal Act is amended in 9 of 1998.

subsection (1) ^ deleting the word Minister and.

substituting therefor the words Cabinet Secretary Amendment of 33.

Section 32 of the principal Act is amended section 32 of No.

9 of 1998.

(a) in subsection (1) by deleting the word declared hospital appearing in paragraph (b) and substituting therefor the words empaneled and contracted health care provider; (b) in subsection (2) by and matching words the (i) insett ing standard immediately aft er the word appearing in paragraph (a); (ii) deleting paragraph (c) and substituting therefor with the following new paragraph (c) in the case of an empaneled health care provider, whether the conditions, if any, attached to the empanelment or contracting have been met , (c) in subsection (3) by deleting the words ten thousand shillings appearing in the closing statement and substituting therefor the words one hundred thousand shillings or to imprisonment tor a term not exceeding six months.

(d) in subsection (6) by deleting the words ten thousand shillings, or to imprisonment for a term to both and or not exceeding twelve months ten million substituting therefor the words shillings, or to imprisonment for a term not exceeding sixty months or to both.

Amendment of section 34 of No.

34.

Section 34(1) of the principal Act is amended 9of 1998.

<a) in paragraph (a) by insett ing the words on the advice of the Central Bank of Kenya immediately aft er the words a reputable bank; 24 No.

l National Hospital Insurance Fund (Amendment) 2022 (b) by inserting the following new paragraph immediately aft er paragraph (a)- (aa) in government securities as may be approved by the National Treasury; (c) by deleting paragraph (b); and (d) by deleting the proviso.

of 35.

Section 36 of the principal Act is amended by Amendment n Act is amended by deleting section Repeal and of 37 and inserting the following new section replacement section 37 of No.

Accounts and audit.

37.

{1) The Board shall cause to be kept all proper books and records of account of the income, expenditure, assets and liabilities of the Pund (2) p ie accounts of the Board shall be audited and reported upon in No.

18 of 2012.

accordance with the Public Finance Management Act, 2012 and the Public No.

34 of 2015.

Audit Act, 2015.

Repeal and ao ^1' is amended by deleting section re placement of 38 and substituting therefor the following new section- section 38 of No.

9 of 1998.

Annual reports.

38.

(1) The Board ^ all, wift iin three monft is aft er tihe end of each fi nancial year, prepare and submit to the Cabinet Secretary a report of the ^ rations of the Board for the immediately preceding year.

<2) The Cabinet Secretary shall, within three months of submission of the report under subsection ( I ), t ransmit the report to Parliament.

*^epeai of section 38.

The principal Act is amended by repealing section 4L 41of No.9^of 1998.

of 39.

Sepon 42 of the principal Act is amended bw Amendment subsection immediately aft er 25 National Hospital Insurance Fund (Amendment) 2022 (5) Despite any other written law, the assets of the Fund shall not be liable to attachment under any 99 process of law.

Amendment of 40.

Section 43 of the principal Act by deleting the section 43 of No.

or 9 of 1998.

expression Workmens Compensation Act (Cap, 236) Work otherwise and substituting therefor the expression Injury Benefits Act, 2007.

Amendment of 41.

Section 45 of the principal Act is amended by section 45 of No.

9 of 1998.

deleting the words fi% thousand and substituting therefor the words one million.

Insertion of new 42.

The principal Act is amended by inserting the sections into No.

9 of 1998.

following new sections immediately aft er section 45- Application of 45A.

The provisions of the Insurance Cap.

487.

Act shall apply to the Fund only in respect to risk spreading and claims administration services.

Application of 45B.

The provisions of the Retirement No.

3 of 1997.

Benefits Act shall apply to the Fund only with respect to post-retirement medical contributions under section 3(2)(a)(v).

Amendment of 43.

The First Schedule to the princip?il Act is amended the First Schedule to No.

9 of 1998.

in paragraph 6 by deleting the word Minister and substituting therefor the word Cabinet Secretary.

Amendment of 44.

The Second Schedule to the principal Act is the Second Schedule to No.

9 amended of 1998.

the (a) by deleting paragraph 2 and substituting therefor following new paragraph 2.

The office of a member of the Vacation of office.

Board, other than an ex-offi cio member, shall become vacant if the member (a) at any time resigns fr om offi ce by notice in writing to the Cabinet Secretary; (b) has been absent fr om three consecutive meetings of the without the Board fr om the permission Chairperson; 26 No.

l 2022 National Hospital Insurance Fund (Amendment) or (c) is adj udged bankrupt enters into a composition scheme or arrangement with creditors; (d) is convicted of an offence involving dishonesty or fr aud; (e) is convicted of a criminal off ence and sentenced to imprisonment for a term exceeding six months or to a fi ne exceeding ten thousand shillings; or (1) is incapacitated by or prolonged physical mental illness.

(b) in paragraph 3 (i) by deleting the words and honorary treasurer appearing in sub-paragraph (2) and substituting therefor the words fr om among members of the Board except ex-offi cio members of the Board; (ii) by deleting sub-paragraph (3); (iii) by deleting the word nine appearing in sub- paragraph (4) and substituting dierefor the word fi ve; (iv) by deleting the words standing orders appearing in sub-paragraph (8) and substituting therefor the word guidelines; (c) by deleting paragraph 5.

45.

A person who is a member of the Board of the Transitional provision.

National Hospital Insurance Fund at the time of commencement of this Act shall serve for the remainder of his or her unexpired term.

:.