BY MARY ADISA
Government seeks to enhance uptake of insurance for the attainment of Universal Health Coverage for all persons within Kenya
The government has opted to go restricted tendering for the provision of travel insurance cover for all travelers to Kenya on short term stay in what will likely lock out competent service providers from bidding for the lucrative business.
The requirement for the provision of the travel insurance cover for foreigners traveling to Kenya for a short stay- 12 months and below- is provided under the Social Health Insurance Act of 2024.
The new insurance product comes as the government seeks to enhance the uptake of insurance as it ramps up efforts to accelerate the attainment of Universal Health Coverage for all persons within Kenya as one of the priorities under the Bottom-Up Economic Transformation Agenda (Beta).
The details of the government’s plan to get on board the few selected underwriters to provide the cover are contained in the letter of January 30, 2024 that Medical Services Principal Secretary Harry Kimtai wrote to Mr Godfrey Kiptum, the Commissioner on Insurance and the CEO Insurance Regulatory Authority (IRA).
“The purpose of this letter therefore, is to request you to urgently provide us with a list of licensed or approved inbound travel health insurance products or providers for the purposes of undertaking a restricted tendering process,” says PS Kimtai.
The PS says that the “providers listed will then be issued with a request for proposal with the appropriate specifications.”
This means that all insurance undertakers have to do is apply to the IRA, the industry regulator, to be registered as travel insurance providers for the new product.
Other than the requirement of mandatory insurance cover for inbound travelers, Kenyan citizens are required to register with the Social Health Insurance Authority (SHA) whether in employment or not and contribute to the kitty for the provision of the cover.
“In this regard, the Ministry of Health has commenced the process of establishing the necessary administrative framework for the implementation of the policy and legal requirements,” says the PS.
This according to the PS includes identification and selection of an appropriate inbound travel health insurance cover and provider to be designated for all travelers to Kenya on short term stay.
However, players in the industry note that while the introduction of a new insurance product into the market is expected to increase in insurance uptake and therefore increased premiums in the effort by the government to increase insurance coverage, it will lock out many underwriters qualified to offer the travel insurance cover.
This even as fears abound that the business for the provision of the insurance service could be tailored for a few individuals.
“It is only fair that they procure the insurance service providers for the product through a competitive bidding process. Handpicking the service providers, exposes all the mischief in the whole process,” a stakeholder in the industry player who did not want to be named for fear of victimization, said.
“I don’t understand what is so sensitive about the provision of this insurance cover to warrant a restricted tendering process. We all know that valid exemptions can only be made on materials that are security in nature, for instance, the procurement of military hardware among others,” the industry player said.
Section 26 (6) of SHI Act provides; “a person who is a non-Kenyan who intends to enter and remain in the territory of Kenya for a period of less than 12 months shall be required to be in possession of a travel health insurance cover as may be designated by the Cabinet Secretary.
The cabinet on December 13, 2023 directed that every non-Kenyan visiting the country on a short-term stay be in possession of the mandatory travel health insurance.
The cabinet directive was part of the decision to lift the Visa requirements for all non-Kenyans travelling to the country beginning January 2024.
