Parliament review: MPs question delays in remitting teachers' deductions

Emuhaya MP Omboko Milemba told the House the National Treasury ceased remitting medical capitation funds in September 2024.

He said non-remittance has seen hospitals decline to offer services or they demand out-of-pocket payments from teachers, despite consistent deductions from their salaries for both their medical scheme and the Social Health Insurance Fund (SHIF).

“Prior to 2015, teachers received a medical allowance, enabling them to access healthcare services through private insurance or out-of-pocket payments. In 2015, the government introduced a medical scheme that is administered by a consortium of insurance companies led by Minet Kenya Insurance Brokers and remitted to the National Treasury,"  noted Milemba.

“The failure to remit these funds violates Article 43(1) of the Constitution, which guarantees the right to healthcare. Teachers are being denied essential services, which undermines their dignity and productivity.”

Milemba demanded that the Committee on Finance and National Planning engage the National Treasury and provide the status of disbursement of Sh11 billion owed to hospitals.

“What are the measures the ministry has put in place to ensure prompt and regular disbursement of funds to hospitals under the Teachers’ Medical Scheme to prevent similar delays in the future?” he posed.

During the week, Kirinyaga senator James Kamau Murango also sought a statement from the Senate Committee on Education regarding the disbursement and review of capitation to public primary and secondary schools.

He demanded the House be furnished with details on outstanding capitation arrears for the 2024 academic year and a clear timeline for disbursement of both the pending amounts and the first-term allocation for 2025.

Furthermore, the senator demanded clarity on whether the government intends to review the per-learner capitation, which has remained unchanged since 2017 despite rising costs and inflation.

He argued that underfunding is placing immense pressure on schools, jeopardising their ability to provide quality education.

Meanwhile, the National Assembly kicked off debate on the Equalisation Fund (Administration) Bill (Senate Bill No. 14 of 2023), which seeks to repeal the Public Finance Management (Equalisation Fund Administration) Regulations, 2021.

The Bill aims to provide an administrative framework for the management of the Equalisation Fund, as established under Article 204 of the Constitution.

The Bill establishes the Equalisation Fund Advisory Board, outlining its structure and responsibilities, including overseeing the identification, selection, and implementation of projects funded under the Equalisation Fund.

The board will consist of representatives from the National Assembly, Senate, Council of Governors, the Commission on Revenue Allocation, and other key stakeholders.

During the debate, lawmakers raised serious concerns over the mismanagement and inefficiencies surrounding the Equalisation Fund, questioning its impact over the past two decades.

The Bill stipulates that the fund should be used for provision of basic services, including water, roads, health facilities, and electricity, to marginalised areas to bring them to the same level as the rest of the country.

Eldas MP Adan Keynan lamented over the utilisation of the fund.

He regretted that it has been 20 years and there’s nothing to demonstrate Equalisation Fund has benefitted the intended beneficiaries.

Tiaty MP William Kamket decried the misuse of the fund, citing double allocations by county governments. “One of the ways this fund has been abused is through double allocation and overlapping of projects. You’ll find that a county government has done a road somewhere, and they will allocate a similar amount of money to the same road,” he explained.