The Social Health Insurance Bill, National Assembly Bills No. 58 Of 2023_0

REPUBLICOFKENYA

PARLIAMENT

NATIONALASSEMBLYBILLS (BillNo.58of2023)

THESOCIALHEALTHINSURANCEBILL,2023

(A Bill published in the Kenya Gazette Supplement No. 164 of 2023 and passed by the National Assembly, with amendments, on September 27th 2023)

N.A./B/No.58/2023

THESOCIALHEALTHINSURANCEBILL,2023 ARRANGEMENTOFCLAUSES

Clause

PARTI-PRELIMINARY

• 1—Shorttitle and commencement.
• 2—Interpretation.
• 3—Objects of theAct.

PARTII-ESTABLISHMENTOFTHESOCIAL HEALTHAUTHORITY

• 4-Establishment of theSocial HealthAuthority.
• 5—Functions of the Authority.
• 6-Powers of the Authority.
• 7—The Board of the Authority.
• 8—Qualifications for appointment.
• 9-Vacancy of office.
• 10—Conductofbusiness and affairsof theBoard.
• 11—Delegation by the Board.
• 12—Remuneration of members.
• 13—Appointment of the Chief Executive Officer.
• 14Qualification for appointment as Chief Executive Officer.
• 15—TenureofofficeoftheChiefExecutiveOfficer.
• 16—Corporation Secretary.
• 17-Staff.
• 18—Protection from personal liability.
• 19-CommonsealoftheBoard.

PARTIII-PRIMARYHEALTHCAREFUND

• 20-Establishment of the Primary Healthcare Fund.
• 21—Sources ofFunds.
• 22—ExpenditureoftheFund

• 23—Capital of the Fund.

24—Implementation of thePrimary HealthcareFund.

PARTIV-THESOCIALHEALTHINSURANCE FUND

• 25-EstablishmentoftheSocialHealthInsuranceFund.
• 26—Registration.
• 27-Contributions.

PARTV-THEEMERGENCY,CHRONICAND CRITICALILLNESSFUND

• 28—Establishment of the Emergency, Chronic and Critical Illness Fund.
• 29Sources of funds.
• 30—Implementation of the Emergency, Chronic and Critical Illness Fund.

PARTVIBENEFITS,TARRIFS,EMPANELMENT, CONTRACTINGANDCLAIMS

• 31—Benefits
• 32—Tariffs.
• 33-Empanelment.
• 34—Contracting.
• 35—Claims management.
• 36-Settlementofclaims. PARTVII-FINANCIALPROVISIONS
• 37—Financial year.
• 38-Retentionofreceipts andearnings
• 39—Annual estimates.
• 40-Expenses of administering the Fund.
• 41—Accounts and audit.
• 42—Annual report.

PARTVIIIDISPUTERESOLUTIONTRIBUNAL

• 43-Dispute Resolution.
• 44-Establishment of theDisputeResolutionTribunal.
• 45—Vacancy in the Dispute ResolutionTribunal.

PARTIX-MISCELLANEOUSPROVISIONS

• 46-Stakeholderengagement.
• 47—Digitization.
• 48—Offences and penalties.
• 49—Recovery of sums due under this Act.
• 50—Regulations.
• 51—Conflict with other laws.
• 52—Application of Cap. 487.
• 53—General Penalty.
• 54-Repeal of No. 9 of 1998.
• 55—Winding up.

SCHEDULES

FIRST SCHEDULE

TRANSITIONAL PROVISIONS

SECONDSCHEDULE

CONDUCT OF BUSINESSAND AFFAIRS OF THEBOARD

THESOCIALHEALTHINSURANCEBILL,2023 ABillfor

• ANACTofParliamenttoestablishtheframeworkfor the management of social health insurance;to providefortheestablishmentoftheSocialHealth Authority;togiveeffecttoArticle 43(1)(a)of the Constitution;andforconnectedpurposes

ENACTEDbytheParliamentofKenyaas follows--

PARTIPRELIMINARY

1. This Act may be cited as the Social Health InsuranceAct,2023andshallcomeintoforceonsuchdate as theCabinetSecretarymaydesignatebynoticeinthe Gazette. 2. 2.In this Act, unless the context otherwise requires-- 3. "Authority" means the Social Health Authority establishedundersection4;

"beneficiary"means a person who—

• (a)is a contributor;
• (b)has not attained the age of twenty-one years,has no income of his own and is living with the contributor;
• (c)has not attained the age of twenty-five years,is undergoingafull-timecourseofeducation ata university, college, school or other educational establishmentorservingunderarticlesoran indenture with a view to qualifying in a trade or profession and is notinreceipt of anyincome other than a scholarship,bursary or other similar grant or award;
• on and living with the contributor; or
• (e) is a spouse of the contributor;

"Board"means the Board of the Social Health Authority constituted under section7;

Short title and commencement.

Interpretation.

"Cabinet Secretary"means the Cabinet Secretary for the timebeingresponsibleformattersrelating tohealth;

"chronic illness"means a condition that lasts one year or more and require ongoing medical attention or limit activities of daily living or both;

"Claims Office" means the Claims Management Officeestablishedundersection35;

"critical illness" means a serious and potentially lifethreatening condition that demands urgent medical interventionandcanhaveasubstantialimpactona person's health, well-being and quality of life;

"contracting" means the entering into a formal agreementwithanempaneledhealthcareprovideror healthcare facility for purposes of provision of services;

"contributor" means a person liable to contribute to theFundasprovidedundersection27;

"Dispute Resolution Tribunal" means the Tribunal

established under section 44;

"Emergency, Chronic and Critical Illness Fund" meansthefundestablishedundersection28;

"emergency treatment"means sthenecessary immediatehealthcarethatmustbeadministeredtoprevent death or worsening of a medical situation;

"empanelment" means enrolment of a health care providerintothelistof healthcareservicefacilities approved by the Board;

"employer" has \_the meaning assigned under the No.1lof2007. Employment Act, 2007;

"Funds"means the Primary Healthcare Fund establishedunder section20,theSocialHealthInsurance Fund established under section 25 and the Emergency, ChronicandCriticalIlnessFundestablishedundersection 28;

"health care provider" has the meaning assigned to it No. 21 of 2017. under theHealthAct,2017;

"healthcare services" has the meaning assigned to it No. 21 of 2017. undertheHealthAct,2017;

"household" means a social unit comprising of an eligiblecontributor,whethercontributingbyselforpaid for,and theirbeneficiaries,or whosharethe same socialeconomic needs associatedwith consumption and production;

"indigent"means a person who is poor and needy to the extent that the person cannot meet their basic necessities of life;

"means testing" means a method that uses the Means TestingInstrument to determine whether anindividual or a householdhastheabilitytopayfor their social health insurance premium;

"Means Testing Instrument"means a set of indicators that capturevarioussocio-economicaspects of an individualor ahouseholdforpurposesofconducting a means testing;

"medical insurance provider" has the emeaning assigned to it under theInsurance Act, Cap.487;

"PrimaryHealthcare Fund"means theFund established undersection20;

"primary health care"means essential health care based on practical, scientifically sound and socially acceptablemethods and technology that is made universallyaccessibletoindividualsandfamiliesinthe communityatlevels1,2and3ofhealthservices,tomeet their health needs at every stage of the life cycle, with their fullparticipationandat anaffordable cost tothe community and the country;

"spouse"means the wife or husband of a contributor;

"tariff' means the rates or fees that are paid to healthcarefacilitiesor healthcareprovidersforservices covered under this Act;

"Universal Health Coverage" meansthatall individualsandcommunitiesreceivethehealthservices theyneedincludingthefullspectrumofessential,quality healthservicesfromhealthpromotiontoprevention, treatment, rehabilitation, and palliative care without sufferingfinancialhardship;and

"vulnerable person" means a person who needs special care,support or protection,including the orphaned and vulnerable children, widows or widowers, person with disability,elderlypersons orindigent dueto a riskof abuse orneglect andwhohasbeen identified assuchby the relevant government body.

• 3.The objects of this Act shall be to—
• (a) provideaframework forimprovedhealth outcomesandfinancialprotectioninlinewiththe right to health and universal health coverage;
• (b) realign healthcare systems, processes and programs for responsiveness, reliability and sustainability of health care inKenya;
• (c)enhance thepoolingofresources andrisksbased on the principles of solidarity, equity and efficiencyso astoguarantee access tohealthcare services to all;and
• (d) promotestrategicpurchasingofhealthcare services.

PARTII-ESTABLISHMENTOFTHESOCIAL HEALTHAUTHORITY

• 4.(1) Thereis established an Authority to beknown as the Social Health Authority.
• (2)TheAuthorityshallbeabodycorporatewith perpetual succession and a common seal and shall, in its corporate name, be capable of—-
• (a)suing and being sued;
• (b) taking, purchasing or otherwise acquiring, holding, charging and disposing ofmovable and immovable property;
• (c) receiving and borrowing money; and
• (d) doing or performing such other things or acts necessary for the proper performance of its functions under this Act.
• (3)Theprovisionsof theFirstScheduleshallhave effect with respect to the Authority.

Objects of the Act.

Establishmentof theSocial Health Authority.

• 5.Thefunctionsof theAuthorityshall beto
• (a)register the beneficiaries in accordance with this Act;
• (b) manage the Funds established under this Act;
• (c) receive all contributions andother payments required by this Act to bemade to the Funds;
• (d) empanel andcontract health care providers and healthcare facilities upon inspection, licensing and certificationofthehealthcareprovidersand healthcarefacilitiesby therelevant body;
• (e) consider andmakepayments to contracted health careproviders andhealthcarefacilities outof the Fundsin accordancetotheprovisionsofthisAct;
• (f) developguidelinesfor the operationsand implementation of theFunds established under this Act;
• (g)establishsectoral linkages for effective management and growth of the Funds;
• (h) monitor and evaluate programs and activities undertheFunds;
• (i)receiveandaddress complaints that mayarise fromtheimplementationofthisAct;
• (j)advise the Cabinet Secretary on matters of social healthinsuranceincluding theformulationof policies;
• (k) implement all government policies on social health insurance andrelatedfunctions;and
• (l)perform any otherfunction conferred on it by this Actoranyotherwrittenlaw.
• 6.(1)TheAuthorityshallhaveallthepowers necessaryfortheperformanceofitsfunctionsunder this Act.
• (2)Without prejudice to the generality of the foregoing, the Authority shall have power to-
• (a)manage,control and administer the assets of the Authorityin such manner andfor such purpose as bestpromotestheobjectsforwhichtheAuthority

Functions of the Authority.

Powers of the Authority.

isestablishedinaccordancewiththePublic Procurement and Assets Disposal Act,2015:

ProvidedthattheAuthorityshallnotchargeor disposeofanyimmovablepropertywithoutthe prior approval of the National Assembly;

• (b)receive anygifts,grants,donationsorendowments madetotheFundoranyothermoniesinrespectof theFundandmakedisbursementstherefromin accordancewith theprovisionsofthisAct;
• (c)openabankingaccountorbankingaccountsfor theFundwith authorizationfrom theNational Treasury; and
• (d)enter intoassociationwith suchother bodies or organizations,within or outside Kenya, as it may consider desirable or appropriateandin furtherance of the purpose for which the Fund is established.
• 7.(1) The Authority shall be managed by a Board whichshallconsistof
• (a)a non-executive Chairperson,who shall be appointed by the President;
• (b) the Principal Secretary in the ministry for the time beingresponsibleformattersrelatingto health or a designated representative;
• (c)the Principal Secretary in the ministry for the time beingresponsibleformattersrelating tofinance or a designated representative;
• (d) the Director-General forHealth;
• (e)arepresentativeofthe CountyExecutive CommitteeHealthCaucus;
• (f)one person,not being a Governor,nominated by the Council of County Governors with knowledge in field of finance, accounting,health economics, laworbusiness and management;
• (g)oneperson,not being a public officer with proven experienceinmattersofhealthinsurance,health financing, financial management, health economics,healthcareadministration.

No.33of 2015.

TheBoardof the Authority.

• (h) four persons, not being public officers, nominated by—
• (i) theKenyaMedical Association;
• (i) theinformalsector association;
• (iii) the consortium of healthcare providers; and
• (iv)the Central Organization of Trade UnionsKenya.
• (i)the Chief Executive Officer of the Authority,who shall be an ex-officiomember of theBoard.

(2)ThemembersoftheBoardnominatedunder subsection (1)(f),(g)and (h) shall be appointed by the CabinetSecretarybyNoticeintheGazette.

(3) The Chairperson and the members of the Board appointed under subsection(1)shall servefor a term of threeyearsandshall be eligibleforre-appointmentfor one further termofthreeyears.

(4)In appointing persons as members of the Board under subsection (1) (f), (g) and (h),the Cabinet Secretary shall ensure that the appointmentsafford equal opportunity to men and women, youth, persons with disabilities, minorities and marginalized groups and ensure regional balance.

8.(1) A person shall be eligible for appointment as a Chairperson or member of theBoard undersection 7(1)(a), (g) and (h) if that person—-

• (a) is a citizen of Kenya;
• (b)holds a minimum of abachelor's degreefrom a universityrecognizedinKenya;
• (c)hasknowledge and experience of notless than ten years in data science, information technology, health governance, health administration, health policy,finance or economics,fiveofwhich shall beatmanageriallevel;and
• (d) meets the requirements of Chapter Six of the Constitution.
• (2)A person shall notbe eligiblefor appointment as a member of the Board under section 7 if that person—
• (a)has atanytimebeen convictedof acriminal

Qualificationsfor appointment offence andsentenced to atermof imprisonment exceeding sixmonths;

• (b) is declared tobe of unsound mind;
• (c) is an undischarged bankrupt;
• (d) is a director, officer, employee or shareholder of any insurer, broker,insurance agent or any other member oftheinsuranceindustry;or
• (e)has been found in accordance with anylaw or parliamentaryreportstohavemisusedorabused a state office or public office or in any way to have contravened theprovisions of Chapter Sixof the Constitution.

9. The office of the chairperson or member of the Vacancy of offce. Boardshall becomevacantif theholder—

• (a)resignsfrom officebynoticeinwritingtothe appointing authority;
• (b) is absent from three consecutive meetings of the Board without lawful cause;
• (c)is adjudged bankrupt or enters into a composition scheme or arrangement with his creditors;
• (d)is convicted of a criminal offence and sentenced to imprisonment for a term exceeding six months;
• (e) is incapacitated by prolonged physical or mental illness;
• (f)isotherwiseunableorunfittodischargehisduties; or
• (g) dies.

10.The conduct and regulation of the business and affairsof theBoard shall be as provided in the Second Schedule,but subject thereto,theBoardmayregulateits ownprocedure.

11. The Board may, by resolution either generally or in any particular case,delegate to any committee of the Board or to any member, officer, employee or agent of the Board theexerciseof anyof thepowersor theperformance ofanyofthefunctions orduties oftheBoardunder this Conductof business and affairs of the Board.

Delegationby the Board.

Act.

12.The chairperson and members of theBoard shall be paid such remuneration,fees,allowances and such other reimbursements as may be approved by the Cabinet SecretaryinconsultationwiththeSalariesand Remuneration Commission.

Remuneration of members.

Appointment of theChief ExecutiveOfficer.

13.(1)Thereshallbe aChiefExecutiveOfficerof the Authoritywhoshallbecompetitivelyrecruitedand appointed by theBoard.

(2)The Chief Executive Officer shall hold office on such terms as theBoardmay,onthe adviceof theSalaries andRemunerationCommission,determine.

14. (1) A person shall be qualified for appointment as theChiefExecutiveOfficeroftheAuthorityifthat person-

• (a) has a minimum of a master's degree from a university recognized in Kenya;
• (b)has atleast tenyears'knowledgeandexperiencein health insurance, health financing, health economics,healthcareadministrationoranyother relevant field;
• (c) has served in a management level for a period of at leastfiveyears;
• (d)hasnot been convicted of an offence and is not serving a term of imprisonment; and
• (e)meets the requirementsof Chapter Sixof the Constitution.

(2)The Chief Executive Officer shall,subject to the directionsof theBoard,beresponsiblefor the day today managementoftheaffairsandstaffoftheBoard.

(3)The Chief Executive Officer shall be administrator oftheFundsestablishedunderthisAct.

(4)In administering the Fundsreferredtoin subsection(3),theAdministratoroftheFundsshall—

• (a)open and operate suchbankswith the approval of theBoard and the National Treasury;
• (b) supervise and control the day-to-day

Qualificationfor appointmentas ChiefExecutive Officer.

administrationoftheFundsestablishedunderthis Act;

• (c)in consultation with the Board, develop such policiesasmaybenecessaryfortheattainmentof the objectsoftheFundsestablished under thisAct;
• (d) consultwith theBoard on mattersrelatingto the administrationoftheFundsestablishedunderthis Act;
• (e)causetobekeptbooksofaccountsandother booksandrecordsinrelationtotheFunds establishedunderthisActofallactivitiesand undertakings financed from the Funds;
• (f)withtheapprovaloftheBoard,enterintoandsign contracts or agreementsin furtherance of the objects of the Funds established under thisAct;
• (g)prepare,sign and transmit totheAuditor-General, inrespectofeachfinancialyearandwithinthree monthsaftertheendthereof,astatementof accountsrelatingtotheFundsestablishedunder thisActandshowingtheexpenditureincurred from theFunds,and suchdetails as the Public SectorAccountingStandardsBoardmayprescribe from time to time,in accordance with the provisions of thePublicFinanceManagementAct and thePublicAuditAct;
• (h) prepare quarterly and annual financial and nonfinancialreportsinaformatprescribedbythe PublicSectorAccountingStandardsBoardand submitthesametotheNationalTreasurywith copiestotheControllerofBudgetandthe Commission onRevenueAllocation;and
• (i)implement any recommendations from the Board for policyguidanceinfurtherance of the objects andpurpose of theFunds established under this Act.

(5) The existing government financial and procurement regulations shall, to the extent they relate to theadministrationofpublicfundsestablishedunderthe Public Finance Management Act, apply in the No.18of2012.

No.34of 2015.

No.18of2012.

administration of thePrimaryHealthcare Fund, theSocial Health Insurance Fund and the Emergency,Chronic and Critical IllnessFund.

(6) The administrator of the Funds under sub-section (3),shall ensure that the monies held in the Primary HealthcareFund,theSocialHealthInsuranceFund and the Emergency, Chronic and Critical Illness Fund, including anyearningsoraccruals,arespentonlyforthepurposesfor which theseFunds areestablished.

15.TheChief Executive Officershall hold officefor a periodof threeyearsandshallbeeligible for reappointment for one further term of three years.

16.(1) There shall be a Corporation Secretary who shallbecompetitivelyrecruitedandappointedbytheBoard on such terms as the Board may, on the advice of the SalariesandRemunerationCommission,determine.

(2)A person qualifies for appointment as the Corporation Secretary if that person—-

• (a)holds a bachelor's degree inlawfrom a university recognized in Kenya;
• (b) is an Advocate of the High Court of Kenya;
• (c)has at leastfiveyears'experience asa corporation secretaryorasimilargovernancerole;
• (d) is a member in good standing of the Institute of Certified Public Secretaries of Kenya; and
• (e)meetstherequirementsof Chapter Sixof the Constitution.
• (3)The CorporationSecretary shall be theSecretary totheBoardandshall
• (a)inconsultationwiththeChairpersonoftheBoard, issuenoticesformeetingsof theBoard;
• (b) keep, in custody,the records of the deliberations, decisions andresolutionsoftheBoard;
• (c)transmitdecisionsandresolutionsoftheBoardto theChief ExecutiveOfficerfor execution, implementationandotherrelevantaction;
• (d) provide guidance to the Board on their duties and responsibilitiesonmattersrelatingtogovernance;

Tenure of office oftheChief ExecutiveOfficer.

Corporation Secretary.

and

• (e)perform such other duties as the Board may direct.

Staff.

17.The Board may appoint such staff as may be necessaryfor theproper discharge of thefunctionsof the Authority under this Act,upon such terms and conditions of service as theBoardmay determine upon the advice of theSalaries andRemuneration Commission.

Protection from personal liability.

• 18.(1) No matter or thing done by a member of the Board or an officer, employee or agent of the Authority shall, if the matter or thing was done in good faith in the execution of thefunctionsor powers of theAuthority, render the member, officer, employee or agent personally liablefor anyaction,claim ordemandwhatsoever.
• (2)Notwithstanding subsection (1),nothing in this section shall exempt a member of the Board,officer, employeeoragentoftheAuthorityfromindividual responsibilityforunlawful or criminal actcommitted by the member of the Board,officer, employee or agent of the Authority.

Common seal of the Authority.

• 19.(1) There shall be a common seal of the Authority whichshallbekeptinthecustodyoftheCorporation Secretaryandshallnotbeusedexceptonthedirectionof theBoard.
• (2) The affixing of the common seal of theAuthority shallbe authenticated by the signatures of the Chairperson and the ChiefExecutiveOfficer and anydocumentrequired bylawtobemadeundersealandalldecisionsoftheBoard may be authenticated by the signatures of the Chairperson and theChiefExecutiveOfficer.
• (3)TheBoardshall,intheabsenceofeitherthe Chairperson or the Chief Executive Officer, in any particularmatter,nominateonemembertoauthenticatethe sealoftheAuthorityonbehalfofeithertheChairpersonor theChiefExecutiveOfficer.

PARTIII-PRIMARYHEALTHCAREFUND

eEstablishmentof thePrimary Healthcare Fund.

• 20.ThereisestablishedaFund tobeknownasthe PrimaryHealthcareFundwhoseobjectshallbetopurchase primary health care services from health facilities.

21.ThereshallbepaidintothePrimaryHealthcare Sources of Funds.

Fund--

• (a)monies appropriated by the National Assembly;
• (b) any grants, gifts, donations or bequests;
• (c) monies allocated for that purposes from fees or levies administered;and
• (d) monies accruing to or received by the Fund from any other source.

22.(1)Thereshallbepaidoutof theFundpayments in respect of any expenses incurred in pursuance of the object andpurposeforwhich theFund is established.

(2) The expenditure incurred on the Fund shall be limited to annual budget estimates prepared by the Authority at the beginning of the financialyear to which they relate.

(3)Anyrevision of the approvedbudget estimates by theBoard shallbe approved by theNational assemblyin the supplementarybudget estimates.

23. The capital of the Fund shall be as appropriated by theNationalAssemblyor from any other sourceprovided for under this Act.

24.TheCabinetSecretaryshallinconsultationwith theBoardmakeregulationsfortheimplementationofthe PrimaryHealthcareFund.

PARTIV-THESOCIALHEALTHINSURANCE FUND

25.(1) There is established a Fund beknown as the SocialHealthInsuranceFund.

• (2)ThereshallbepaidintotheFund
• (a) contributions under the Act;
• (b) monies appropriated by the National Assembly for indigentandvulnerablepersons;and
• (c) gifts, grants, innovative financing mechanisms or donations.

26.(1) Every Kenyan shall register as a member of Registration. theSocialHealthInsuranceFund.

Expenditure of the Fund.

Capitalof the Fund.

Implementationof thePrimary Healthcare Fund.

Establishmentof the Social Health Insurance Fund.

(2)A person who, being a non-Kenyan, and is ordinarily resident in Kenya, shall be eligible for registrationasamember of theSocialHealthInsurance Fund.

(3)AchildbornaftercommencementofthisActshall be registered at birth as a member of the SocialHealth Insurance Fund.

(4)Registration shallbe conducted continuouslyat variouspointsinsuchmanner asshallbeprescribedbythe Cabinet Secretary.

(5) Any person who is registerable as a member under thisAct shall produce proof of compliance with the provisions of this Act on registration and contribution as a precondition of dealingwith or accessingpublic services from the national government, county government or a national or county government entities.

(6)Aperson whois a non-Kenyan thatintends to enter and remain in the territory ofKenya for aperiod of lessthantwelvemonthsshallberequiredtobe in possession of a travel health insurance cover as maybe designated by the CabinetSecretary.

(7) The Cabinet Secretary shall establish the policy, regulatory or administrative measures to give effect to subsection (6).

27.(1) The following persons shall be liable to Contributions. contributetotheFundunderthisAct

• (a)everyKenyan household;
• (b) a non-Kenyan resident, ordinarily residing in Kenya for a period exceeding twelve months;
• (c) the national government;
• (d) a county government; and
• (e) any other employer.
• (2) Contributions under this Act shall be paid as follows--
• (a) in the case of a household whose income is derivedfrom salaried employment,by a monthly statutorydeductionfromthewages or salaryby the employer at a rate prescribed under this Act;
• (b)in the case of a household whose income is not

• derivedfromsalaried employment,by an annual contribution of aproportion ofhouseholdincome asdeterminedbythemeanstestinginstrumentin the manner prescribed under thisAct;
• (c)in the case of households in need of financial assistance as determined by the means testing instrument,bythegovernmentatarate apportioned from funds appropriatedby Parliament and CountyAssemblies for that purpose as prescribed under this Act;
• (d) in the case of persons underlawful custody,by the Government from funds'appropriatedby Parliament for that purpose at a rate prescribed under this Act;
• (e) in case of a person who is a permanent resident in Kenya,by such person at a rate as may be prescribed under this Act; and
• (f) in the case of any other person, by the person himselfoutofhisownfundsinthemanner prescribed under this Act.

Providedthatthecontributionsunderthissectionshall bepaid at the time of registration.

• (3) A person referred to in subsection (2)(b) shall pay theircontributions onan annualbasis.

2. (4)Apersonshallonlyaccesshealthcareservices underthisActwheretheircontributionstotheSocial Health Insurance Fund are up to date and active. 3. (5)The government shall ensure that premium financingproducts are providedfor non-salariedpersons for the payment of social health insurance. 4. (6)Any person who fails to pay any contribution in respectofanyperiodonorbeforethedayonwhich payment is due shall be liable to a penalty equal to two percentofthe amountduefor contributionfor theperiod whichthecontributionremainsunpaid andthetotalannual contributions. 5. (7)A person shall pay all outstanding contributions andpenaltiesaccruedbeforeresumingaccesstothe healthcare services provided under this Act.

PARTV-THEEMERGENCY,CHRONICAND CRITICALILLNESSFUND

28.ThereisestablishedaFundbeknownasthe Emergency, Chronic and Critical Illness Fund to——

• (a)defraythecostsofmanagementofchronic illnessesafterdepletionofthesocialhealth insurance cover; and
• (b) to cover the costs of emergency treatment.

29.The sources of funds for the Emergency, Chronic CSources of funds. and Critical IlnessFundshall be

• (a)monies appropriated by theNational Assembly;
• (b)gifts, grants, donations or endowments; and
• (c) such monies from any other lawful source.

30.The Cabinet Secretaryshall in consultation with theBoardmakeregulationsfortheimplementationofthe Emergency, Chronic and Critical Illness Fund.

PARTVIBENEFITS,TARRIFS,EMPANELMENT, CONTRACTINGANDCLAIMS

31.(1)Everybeneficiaryshallbeentitled toan essential healthcarebenefits package prescribed by the CabinetSecretaryinconsultationwith theBoard.

(2)Notwithstanding the provisions of this Act, nothing shall be construed to preclude any beneficiaryfrom takingprivatehealthinsurancecover.

Tariffs.

32.(1) The benefits payable under this Act shall be based on a tariff.

(2) The Cabinet Secretary shall,in consultation with the Board,prescribe the tariffs applicable to the benefits package under this Act.

(3) The tariffs referred to under subsection (1), may be reviewedfromtimetotime.

Empanelment.

33.(1) The Authority shall make payments out of the Funds tohealthcareproviders or healthcarefacilities that areempaneledandcontractedinaccordancewiththe provisionsofthisAct.

Establishmentof the Emergency, Chronic and Critical Illness Fund.

Implementationof Emergency, Chronic and Critical Illness Fund.

Benefits.

(2)Ahealthcare provider or healthcare facility seekingtobeempanelledunder theAct shallmake an application tothebodyresponsiblefor accreditationfor qualityofcarein themannerprescribedby theCabinet Secretary.

(3)Uponthepublicationofthelistofempanelled healthcareprovidersandhealthcare facilitieson the website and in the Kenya Gazette, the Authority may contractthehealthcareprovidersorhealthcarefacilities within thirtydaysof thedateof thepublication of thelist.

(4) The body under subsection (2) may, at any time, revokeanyaccreditationunderthissection.

(5)Ahealthcare provider or healthcarefacility aggrieved by the decision of the body under subsection (2) may appeal to the Dispute Resolution Tribunal within thirty daysofthedecisionoftheBoard.

34.(1) The Authority may from time to time negotiate andenterintocontractswithhealthcareserviceproviders andhealthcarefacilitieswhoqualifyundersection33(3)for theprovision of healthservicesto thebeneficiaries.

(2)TheAuthorityshallpublishonitswebsiteandin suchothermannerastheAuthoritymaydeemappropriate, thehealthserviceprovidersandhealthcarefacilities referredtoinsubsection(1)tobecontractedhealthservice providers for purposes of this Act.

(3)Apublication under thissectionshall besubject to fulfillmentbythehealthcareserviceproviderand healthcare facility of such criteria, including meeting qualitystandardssetbytheCabinetSecretary accordancewithsection33(2).

(4)Everycontractedhealthcareproviderand healthcarefacilityshallbeissuedwithsuchidentification asmaybeprescribedbytheAuthorityandsuch identification shall be displayed in a conspicuous position.

(5)TheAuthorityshallterminatethecontractwithany health careprovider andhealthcarefacilitywheresuch health careprovider orhealthcarefacilityfailstomeetthe criteriaprescribedbytheCabinetSecretaryunder subsection (3).

Contracting.

(6)Upon termination of a contract under subsection (5)theAuthorityshall,bynoticeintheGazette,revokethe declarationmadeundersubsection(3).

(7) Any health care provider who,or health facility whichdisplays theidentificationreferred toinsubsection (4) without permission of the Authority commits an offence andisliableupon conviction toafinenotexceedingone million,or toimprisonmentfor a term not exceeding two years or to both.

35.(1) There is established within the Authority an officetobeknownastheClaimsManagementOffice which shall reviewandprocess theclaimsmade under this Act.

• (2) The Claims Office shall be responsible for

2. (a)reviewing, processing and validating medical claimsfromhealthcareprovidersandhealthcare facilities; 3. (b) appraising medical claims based on the benefit package; 4. (c)issuingpre-authorizationsfor access tohealthcare services based on the benefit package; 5. (d)developingane-claimsmanagementsystem; 6. (e) undertaking quality assurance surveillance in respect of claims; 7. (f)establishingsystems andcontrolsfor detecting and identifyingfraudappropriatetotheFund's exposure and vulnerability; 8. (g) sensitizing claimants ontheconsequencesof submitting false and fraudulent claims; 9. (h) collecting and analyzing data for purposes of claim management; 10. (i) preparing quarterly reports on claims for submissiontothetotheBoardandtheCabinet Secretary;and 11. (j)performinganyother functionsas maybe necessary for the better carrying out of its functions under this Act.

Claims Management.

• (3)TheClaimsManagementOfficemaydelegatethe performance of its functions under subsection 2(a) and (b) toasuitableentity.

Cap.487.

• (4)The entityreferred to undersubsection(3) shall be a medical insurance provider and a claim settling agent as defined and licensed by the Insurance Regulatory Authority under theInsuranceAct:

Providedthatasuitablenumberofentitiesshallbe contractedtomanagetheclaimsfrom thezonesidentified in the manner prescribed in the Regulations.

• (5)TheCabinetSecretaryshallmakeregulationsfor thebetter carrying out of theprovisionsof thissection.

Settlementof claims.

• 36.(1)The Authority shall make payments toa contracted healthcareprovider or healthcare facility upon submissionofaclaimbytheClaimsManagementOffice.
• (2)The Cabinet Secretary shallmake regulationsfor the better carrying out of the provisions of this section.

PARTVII-FINANCIALPROVISIONS

• 37.Thefinancialyear of theAuthorityshallbe the period of twelve months ending on the thirtieth day of June in each year.
• 38.All receipts, earnings and accruals to the Authority andthebalanceoftheFundsatthecloseofeachfinancial year shall beretainedbytheAuthorityforthepurposesof theFunds.
• 39.(1) The Authority shall, within three months after the end of the financial year, cause to be prepared estimates of its revenue and expenditurefor thatfinancialyear.
• (2)Theannualestimatesshallmakeprovisionforall estimatedexpenditureoftheAuthorityforthefinancial year concerned, and in particular shall provide for—-
• (a)thepayment of all the claims and benefits of the contributorsinrespectofmedicalandhealthcare expensesincurredbythemortheirnamed beneficiaries pursuant to the provisions of this Act;
• (b) the payment of salaries,allowances and other charges in respect of the staff of the Authority;

Financial year.

Retention of receipts and earnings.

Annualestimates.

• (c) the payment of pensions,gratuities and other chargesinrespectofretirementbenefitswhich are payable out of the funds of the Authority;
• (d) theproper maintenance of buildings and grounds of the Authority;
• (e) the acquisition, maintenance, repair and replacementof the equipment andothermovable propertyof theAuthority;or
• (f)thecreationofsuchreservefundstomeetfutureor contingentliabilitiesinrespectofretirement benefits,insurance or replacement of buildings or equipment, orin respect of such othermatters as the Authority may consider appropriate.

(3)Theannualestimatesshallbeapprovedbythe Boardbeforethecommencementofthefinancialyearto which they relate andafter the approval,the annual estimatesshallnotbeincreasedwithoutpriorconsentofthe Board.

(4) No expenditure shall be incurred for the purposes oftheAuthorityexceptinaccordancewiththeannual estimates approvedundersubsection(3).

40.(1) There shall be paid out of the finances of the Authoritysuchadministrativeexpensesasmaybeincurred bytheBoardintheexerciseof itspowersorthe performance of its functions under this Act.

(2)The administrative expenses referred tounder subsection(l)shallnotexceedfivepercentoftheannual expenditureoftheFund.

41.(1) The Board shall cause to be kept all proper books and records of accounts of the income, expenditure, assets and liabilities of theAuthority.

(2) Withinthreemonthsaftertheendofeach financialyear,theBoardshallsubmittotheAuditorGeneral,theaccountsoftheAuthoritytogetherwith—

• (a)a statementof incomeandexpenditureofthe Authorityduringtheyear;and
• (b)statementoftheassetsandliabilitiesofthe

Expenses of Funds. administeringthe

Accounts and audit.

Authorityonthelastdayofthatyear.

(3)TheaccountsoftheAuthorityshallbeaudited and reporteduponinaccordancewiththeprovisionsof the Public Finance Management Act, 2012 and the Public AuditAct,2015.

42.(1)TheBoardshall,withinthreemonthsafter the end of each financial year,prepare and submit to the Cabinet Secretary a report of the operations of the Authorityfortheimmediatelyprecedingyear.

(2)TheCabinetSecretaryshall,within threemonths ofsubmissionof thereportunder subsection(1),transmit thereporttoParliament.

PARTVIII-DISPUTERESOLUTIONTRIBUNAL

43.(1) A person aggrieved by a decision made under this Act may,within one month from the date of the decision,appeal to the Dispute Resolution Tribunal for a reviewofsuchdecision.

(2) The Tribunal may uphold, reverse, revoke or vary the decision of theBoard appealed under subsection (1).

(3)Apersonwhoisnotsatisfiedwithanordermade High Court within twenty-one days from the date the order is made.

Establishment of Dispute Resolution Tribunal.

44.(1) There is established a Tribunal tobeknown as the Dispute Resolution Tribunal for the purpose of hearing and determining complaints,disputes and appeals in accordancewiththisActoranyotherwrittenlaw.

(2) The Tribunal shall consist of

• (a)aChairpersonwhoshallbeappointedbythe President from among persons qualified to be judgesoftheHighCourt;and
• JudicialService Commission and shallpossess knowledge andexperience in health,health economics,business administration,insurance and whoarenotintheemploymentoftheGovernment ortheBoardandarenothealthserviceproviders.
• (3) The members of the Tribunal shall hold office for aperiodofthreeyearsandshallbeeligiblefor

No.18 of 2012.

No.34 of 2015.

Annualreport.

Dispute Resolution.

reappointment for onefurther term of threeyears.

(4)ThequorumforameetingoftheTribunalshallbe theChairperson andtwoothermembers.

(5)The members of theTribunal shall be entitled to receive such allowances as the Cabinet Secretary,in consultationwiththeSalariesandRemuneration Commission,may determine.

(6)The Cabinet Secretary shallprescribeprocedures fortheoperationalizationoftheTribunal.

45.TheofficeofamemberoftheTribunalshall becomevacantifthemember—

• (a) dies;
• (b) resigns;
• (c)is unfit by reason of mental or physical infirmity to perform the duties of his office;
• (d) is convicted of an offence and is sentenced to a term of imprisonmentfor aperiod of sixmonths or more;
• (e)has failed toattendatleast three consecutive meetings of the Tribunal;or
• (f) is removed from office on any of the following grounds--
• (i)gross violation of the Constitution or any other written law; or
• (ii) gross misconduct or misbehaviour.

PARTIX-MISCELLANEOUSPROVISIONS

46.(l)The Authority shallfacilitate public participation and stakeholder engagement in the carrying outofitsfunctionsunder thisAct.

(2)The CabinetSecretary shall prescriberegulations on the modalities of engaging stakeholders at the national andcountylevel.

47. (1) All processes and services under this Act shall continue to be digitized using appropriate, reliable, secure, inter-operable, verifiable and responsive technology through an information system.

Vacancyin the Dispute Resolution Tribunal.

Stakeholder engagement.

Digitization.

• (2)The processes andservices referred to in subsection (1) shall include—
• (a) registration of members;
• (b) member identification;
• (c) contributions to the Fund;
• (d) empanelment of facilities;
• (e) execution of contracts;
• (f) member identification;
• (g) notification and preauthorization;
• (h) claims management; and
• (i) settlement of claims.
• (3)Every Kenyan shall be uniquelyidentified for purposes of provision of health services under this Act.
• (4)Thedigitizationofprocessesandservicesunder this Act shall conform to the provisions of the Data ProtectionAct,2019 and allotherrelevantlaws.
• (5)The Cabinet Secretary shall makeregulations for the better carrying out of the provisions of this section.

48. (1) Any person who—

• (a)failswithout lawfulexcusetopayto theSocial Health InsuranceFundwithintheperiod prescribed by this Act any contribution which he orsheisliableas acontributingemployer topay under this Act; or
• (b)knowingly makes any deduction from the wages oftheemployeeinrespectofanycontribution whichheorsheisliableasacontributing employer topay under thisAct,other than a deductionwhichheorsheisauthorizedtomake by this Act; or
• (c) for the purpose of obtaining anybenefit for himself or herself or for any other person, knowingly makes any false statement or representation, or produces or furnishes, or causes tobeproducedorfurnished,anydocumentor informationwhichheorsheknowstobefalsein

No.24 of 2019.

Offences and penalties.

any material particular,

commitsanoffenceandshallbeliableonconviction toa fine not exceeding two millionshillings or to imprisonmentforatermnotexceedingthreeyears,or to both.

(2) A person who misappropriates any of the funds or assets of the Fund, or assists or causes any person to misappropriate or apply funds, otherwise than in the mannerprovidedintheAct,commitsanoffenceandshall upon conviction,be liabletoimprisonmentfor atermnot exceeding five years or to a fine not exceeding ten million shillings or to both.

(3) Any person who, for the purpose of obtaining the payment of any benefit under this Act, knowingly makes anyfalse statement,whether orally orin writing,commits anoffenceandisliableonconvictiontoafinenot exceeding onemillion shillings or toimprisonmentfor a termnotexceedingsixtymonths,ortoboth.

(4)Anypersonwhowith intent toobtain thepayment of any benefit under this Act, impersonates any person whether living or dead,commits an offence and is liable on convictiontoafinenotexceedingonemillionshillingsor to imprisonment for a term not exceeding three years,or to both.

(5)Ahealthcareproviderorhealthfacilitywhich knowingly or fraudulently alters or falsifies any informationwithintenttodefraudtheAuthorityorto obtainanybenefitthatitisnotentitledtounderthisAct, commits anoffence andisliableonconvictionto

(a)afinenotexceedingtwomillion;

• (b) suspension; or
• (c) removal from the register of empaneled and contractedhealthcareproviders.

(6)TheAuthorityshallcausethenameofeveryhealth careproviderorhealthfacilitysuspendedundersubsection (5)(b)tobenotifiedin theGazetteandsuchinstitution shall not, during the suspension,be entitled to any benefit from the Fund.

(7)TheBoard shall cause thenameof everyhealth careprovider orhealthfacilityremovedfromtheregister undersubsection(5)(c)tobenotifiedintheGazette,atleast twonewspapersofnationalcirculationandattheofficial websiteoftheAuthority.

(8)Ahealthcareproviderorhealthfacilitywhichhas beenremoved from theregister under subsection(5)(c) shallnot beentitled to receive anybenefit from the Authority.

49.(1) The court before which any person is convicted ofan offenceunder thisActmay,withoutprejudiceto any civil remedy, order such person to pay to the Authority, as the case may be,the amount of any contribution or any other sum that was not obtained in alawful manner, togetherwith anypenaltyfound tobeduefromsuch person totheAuthority and anysumso orderedshallbe recoverableasafineandpaidintotheFunds.

(2)AllsumsduetotheAuthorityshallberecoverable as debts due to the Authority, and without prejudice to any otherremedy,mayberecoveredbytheAuthority summarilyasacivildebt.

(3) All criminal and civil proceedings under this Act

(4)Allsumsrecoveredbylegalproceedingsinrespect ofmonieswhichshouldhavebeenpaidintotheFunds shall,when recovered,be paid into theFunds.

(5)Despiteanyotherwrittenlaw,theassetsof the Funds shall not be liable to attachment under any process of law.

50.(1) The Cabinet Secretary shall,in consultation with the Board, make Regulations for the better carrying outoftheprovisionsofthisAct.

(2) Despite the generality of subsection (1), the Cabinet Secretary may make Regulations prescribing—-

• (a)anymattersincidentaltothepaymentand collectionofanycontributionsunder thisAct;
• (b) the amount and rates of contributionspayable by contributorsinto theFund;

Recoveryofsums dueunder this Act.

Regulations.

• (c)themanner of themaking and determination of the healthcare benefits package;
• (d) the manner of the making and determination of any claim toanybenefit;
• (e) the settlement of valid claims;
• (f)the process of enrolment of healthcare providers andhealthcarefacilitieson thelistofapproved healthcare providers and healthcare facilities; and
• (g)anythingwhichisrequired to beprescribed for the better givingeffect of theprovisionsof thisAct.
• (3)For the purposes of Article 94 (6) of the Constitution——
• (a)thepurpose and objective of thedelegation under thissectionistoenabletheCabinetSecretaryto make regulationsforbetter carrying into effect theprovisionsof thisAct;and
• (b) theauthorityoftheCabinetSecretarytomake regulationsunderthisActshallbelimitedto bringing into effect the provisionsof thisAct and fulfilment of the objectives specified under this section.
• (4)Theprinciplesandstandardsapplicabletothe delegated power referred tounder thisActarethosefound in-
• (a) the Statutory Instruments Act;
• (b) the Interpretation and General Provisions Act;
• (c) the general rules of international law as specified underArticle2(5)oftheConstitution;and
• (d) any treaty and convention ratified by Kenya under Article 2(6) of the Constitution.

51.This Act shall prevail in the case of any inconsistency between this Act and any other legislation on mattersrelated toprovisionofsocial healthinsurance.

No.23 of 2013.

Cap.2.

Conflictwith other laws.

52.The provisions of theInsuranceAct shall apply to theAuthority onlyinrespect toclaims administration services.

Application of Cap. 487.

• 53.A person convicted of an offence under this Act General penalty.

for which no other penalty is prescribed shall be liable to a fine not exceeding one million shillings or, in the case of a naturalperson,toimprisonmentforatermnotexceeding two years, or to both.

54.TheNational HealthInsuranceFund Act,1998is repealed.

55.Intheeventofwindingupof anyof theFunds establishedunderthisAct,thecashbalancesshallbe transferredtotheExchequerwhileotherassetsshallbe transferredtotheNationalTreasury.

Repealof No.9of 1998.

Winding up.

FIRSTSCHEDULE (s.4(3))

TRANSITIONALPROVISIONS

1. In this Schedule-

"appointedday"meansthedayappointed for thecominginto operation of theSocial HealthInsuranceAct,2023;

"Fund" means the National Health Insurance Fund existing immediately before the appointed day.

2. (1) On the appointed day, all the funds, assets and other property movableandimmovablewhichimmediatelybeforethatday,wereheldfor andonbehalfoftheFundinthenameoftheNationalHealthInsurance assurance,vestin theAuthority.

(2)Everypublicofficer having thepower or duty to.effector amend any entry in a register relating to property or to issue or amend any certificate or other document effecting or evidencing title to property, or on behalf of the Authority, do all such things as are by law necessary to givefinaleffecttothetransferofthepropertymentionedinsub-paragraph (1).

3. On the appointed day, all rights, powers, liabilities and duties, whether arising under any written law or otherwise,whichimmediately againsttheGovernmentforandonbehalfoftheFundshall,byvirtueof this paragraph, be transferred to, vested in, imposed on or enforceable by oragainst theAuthority.

4. On and after the appointed day, all actions, suits or legal proceedingspendingbyoragainsttheGovernmentforandonbehalfof the Fund shall be carried on or prosecuted by or against the Authority.

5.(1) On the appointed day, the Fund shall not provide enhanced benefits schemes and packages.

(2) Notwithstanding the provisions of subparagraph (1), all enhanced benefits schemes and packages which immediately before the appointed day,werebeingprovidedbytheNationalHealthInsuranceFundshall,by virtue of this paragraph and without further assurance, vest in the Authorityuntil the lapse of the existing contracts.

6. (1) Notwithstanding the provisions of paragraph (2), the National HealthInsuranceFundBoardshallwinduptheFundwithinoneyearfrom the appointeddayand thecashbalances and allotherassetsshallbe transferred to the Authority.

(2) Despite subparagraph (1), the Board of the Social Health Authorityestablishedundersection4oftheActshallcompetitivelyrecruit and appoint its staff under section17of theAct subject tothe approved staffestablishmentandonsuchtermsandconditionsofserviceasmaybe determinedbytheBoard.

(3) Notwithstanding the provisions of subparagraph (1), the staff of theFund areeligibletoapplyforthepositions advertised bytheAuthority andmaybeconsideredforappointmentwheretheyaresuitablyqualified for thepositions advertised.

(4) Despite the provisionsof sub-paragraph (2) and (3),the Authority shallreviewthequalificationsofall thestaffoftheFund andshall,in the appointment of its staff, give priority to the staff of the Fund who are establishment.

(5)A staff of the Fund not appointed by the Authority under subparagraph (2) may exercise his or her option to either-

(a) retire from public service; or

(b) be redeployed within the public service.

7.TheannualestimatesfortheFundforthefinancialyearinwhich theappointeddayoccursshallbedeemedtobetheannualestimatesofthe Authorityfortheremainderofthatfinancialyear:

Authority in such manner as the Cabinet Secretarymay approve.

SECONDSCHEDULE (s.10)

1.(1)TheBoardshallmeetnotless thanfour timesin everyfinancialyearandnotmorethanfourmonthsshall elapsebetweenthedateofonemeetingandthedateofthe next meeting.

1Meetings.

(2) The chairperson may call a special meeting of the Board at any time the chairperson deems fit for expedient transactionofthebusinessoftheBoard.

(3)Thenoticeforameetingof theBoardshallbe giveninwritingtoeachmember of theBoard atleast fourteen days before the day of the meeting.

(4)Inthecaseofaspecial,orextra-ordinarymeeting anoticeoflessthanfourteendays'noticeshallbe consideredsufficient.

(5)Notwithstanding the provisions of subparagraph (2), the chairperson may, upon requisition in writing by at least twothirdsof themembers,convene a special meeting of theBoard at any time for the transaction of the business oftheBoard.

(6) The notice to be given under paragraph (2) and (3) shall state--

• (a) thevenue and time of the meeting;and
• (b)the agendawith sufficient details of business tobe discussed at the meeting.

(7)Thechairperson shall preside at everymeetingof the Board at which the chairperson is present but in the chairperson's absence,the members present shall elect from among themselves a chairperson who shall,with respecttothatmeeting and thebusiness transacted thereat, have all thepowersofthechairperson.

(8)Unlessaunanimousdecisionisreached,adecision onanymatterbeforetheBoardshallbebytheconcurrence of a majority of all the members present and voting at the meeting.

(9)TheBoardmay,withapprovalof theCabinet Secretary, co-opt or invite any number of persons to act as advisors or consultants at any of its meetings or form such committeestoperformsuchfunctionsordutiesofthe Board astheBoardshalldetermine.

(10)Subject tothe provisions on quorum,no proceedings shall be invalid by reason only of a vacancy among themembers of theBoard.

(11) Subject to the provisions of this Schedule,the Board maydetermine its own procedure and the procedure foranycommitteeoftheBoard.

(12) The quorum for the meetings of theBoard shall be five members. Co-opted or invited persons shall not be counted inthe quorum of themeetingsof theBoard and shall not be eligible to vote.

2.(1) The Board may establish such committees as it deems appropriate for the performance of its functions.

(2)A Committee establishedunder sub-paragraph (l) shallelectachairpersonfrom amongstitsmembers.

(3) The Board may where it deems appropriate, co-opt orinvite anyperson toattendthedeliberations ofanyofits committees.

(4)Alldecisionsbythecommittees appointedunder subparagraph (1) shall be ratified by the Board.

Disclosure of Interest.

3.(1)If a member of the Board is present at a meetingoftheBoardoranycommitteeatwhichanymatter isthesubjectofconsiderationandinwhichmatterthat person is directly or indirectly interested in a private capacity,thatpersonshallassoonasispracticablebefore thecommencementofthemeeting,declaresuchinterest.

(2)Thepersonmakingthedisclosureofinterestunder subsection(1)shallnot,unlesstheBoardor committee otherwise directs,take part in any consideration or, discussion of, or vote on any question touching on the matter.

(3)A person who contravenes subparagraph (1) commits anoffence.

(4) No member of the Board or officer,employee or agentoftheBoardshallenterintoaservicecontractor tradewiththeBoard.

(5)A disclosure of interest made under this paragraph Committeesofthe Board.

shallberecordedin theminutesof themeetingatwhich it ismade.

• 4.The Board shall cause minutes of all resolutions and proceedings ofmeetings of theBoard tobeentered in bookskeptforthatpurpose.

Minutes