Nairobi — The National Hospital Insurance Fund (NHIF) has defended its decision to increase members' contributions, saying it is the first step towards providing universal healthcare in the country.

Addressing the media at NHIF building in Nairobi on Thursday, the Fund's chairman, Prof Richard Muga, said other countries ran similar health covers with varied success.

He acknowledged that investment in buildings and land in the past was a mistake, but said this would not be repeated.

"Priority is to give added benefits to our members, which is why over the last seven years, the board has been working on a proposal to expand coverage. This is how outpatient cover was arrived at," Mr Muga said.

He added that private investors might be invited to construct a centre of specialised healthcare, which could also serve medical tourism in the country.

Mr Muga said the body will await the outcome of a court case challenging the new rates next Friday, to know the next course of action. Collection of the new rates was suspended earlier.

The new rates announced last month have been met with protests from the public and COTU, which has asked the court to halt payment until further consultations with stakeholders are held.

Mr Muga defended the fund's heavy spending on personnel, saying it is important for the organisation to increase the number of members across the country.

"We are working to bring the public on board through the many health facilities spread in the constituencies, the church-based healthcare facilities and private providers," he said.

If successful, he added, studies show that universal primary healthcare will be achieved. With increased numbers, he added, contributions will relatively decrease.

Mr Muga said NHIF is strategically positioning itself, and has offices in 35 out of the 47 counties.

"We will work in partnership with the counties to develop health packages, that we can implement together with the private sector and central government," he said.