President William Ruto suggested measures on Monday that will increase top earners’ contributions to the National Health Insurance Fund (NHIF) starting in July while decreasing informal contributor contributions.

According to President Ruto, the current charges, which vary depending on monthly income from Sh150 to Sh1,700, would gradually be phased out and replaced with a flat fee of 2.7 percent of earnings.

Contributions for those making between Sh39,999 and Sh100,000 a month will rise by 8% to 74%, illustrating the effect of using higher incomes to fund lower earners.

The President’s proposal would result in a 40% reduction in monthly payments from the informal sector, from Sh500 to Sh300, if it were to be put into effect before the beginning of the next fiscal year in July.

“Every one of us is going to contribute 2.7 percent of their earnings to NHIF so that we can carry this load of NHIF equally,” said President Ruto. “Those who have been paying Sh500 to NHIF, we will reduce that to Sh300. And for me as President who has been paying Sh1,700, I will be paying Sh27,500.”

Salaried employees will have to pay Sh2,700 starting at Sh100,000, a 59 percent increase from the current Sh1,700. Since the upper limit has been Sh1,700, shielding top earners from significant deductions, earners making more than Sh100,000 would experience a greater spike.