Nairobi — The government is expected to reintroduce the much-touted comprehensive National Social Health Insurance Fund early next year, Medical Services minister Prof Anyang' Nyong'o said on Tuesday.

Prof Nyong'o said the Kenyan healthcare system has become too costly due to a high rate of defaulting on payments, and hence the reason he wanted the proposed scheme to be reintroduced.

"All the previous contentious issues in the scheme have been solved and we are only waiting for the cabinet approval," Prof Nyong'o said.

Under the proposed scheme, the government would be required to set a certain amount of money from the exchequer to cater for the health services of the poor.

The scheme is a modification of the one passed by Parliament in 2005 but which President Mwai Kibaki declined to assent to.

He said the bone of contention in 2005 was how to pay for those who didn't contribute to the fund particularly the poor.

The scheme was compulsory, but the minister says the current arrangement is optional but poor Kenyans will be catered for by the government.

Prof Nyong'o spoke at the launch of a new health insurance product dubbed Blue by CfC Life in partnership with Liberty Health, a wholly owned subsidiary of the Standard Bank Group of South Africa.

The product, in two options, Blue Gold and Blue Diamond, will have full cover on treatment of chronic conditions such as asthma, diabetes, hypertension and HIV and AIDS.

CfC Life managing director, Mr Abel Munda said Blue will provide a dedicated client liaison officer and a 24-hour advice and support across Africa which will also include specialised care for chronic disease management.

Many Kenyans lack access to health care, with general medical inflation standing at 35 per cent.

In addition, only two per cent of the Kenyan population is covered by private insurance companies for healthcare, while another 10 per cent can afford medical cover but do not have it, which means most Kenyans are exposed.

The health situation is further compounded by the fact that the number of chronic diseases is reported to be on the increase with cases of cancer doubling every year.

As a signatory to the World Health Organisation Abuja Declaration, Kenya is required to spend at least 15 per cent of its national income (Gross Domestic Product) on health, up from the current ten per cent.