A potential game-changer is on the horizon for Kenyan employees facing joblessness as the nation considers the introduction of unemployment benefits through a proposed bill in the National Assembly.
The brainchild of Ikolomani MP Bernard Shinali, the Unemployment Insurance Authority Bill envisions a safety net for employees who find themselves out of work and their dependents.
Presenting the bill before the Budget and Appropriations Committee recently, Shinali outlined its core concept—a Unemployment Insurance Fund financed by contributions from both employers and employees.
“The primary goal of this fund is to extend assistance to individuals who have lost their jobs and their respective beneficiaries, shielding them from the adverse socio-economic repercussions of unemployment,” he elaborated.
Funding sources for the proposed fund are diverse, encompassing contributions from employers and employees, allocations from the National Budget by Parliament, financial support from county governments, and donations and grants.
Within the framework of the draft Bill, the creation of the Unemployment Insurance Authority is also envisaged, functioning as a corporate entity overseen by a Board consisting of a chairperson and nine other members.
According to the Bill, the Authority’s key responsibilities would encompass managing the fund and providing counsel to the Labour Cabinet Secretary on unemployment insurance policies and legislation.
Furthermore, the Authority is slated to offer guidance to all levels of government regarding policy considerations related to unemployment and unemployment insurance while facilitating the implementation of such policies.
The draft Bill additionally outlines the recruitment of personnel to support the Authority in effectively carrying out its duties.
Notably, the bill incorporates provisions that exclude specific categories of public officers, as may be prescribed by regulations set forth by the Cabinet Secretary.
This decision will be made in consultation with the advice of the Salaries and Remuneration Commission and the Cabinet Secretary responsible for finance matters.
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