MP Ben Shinali proposes Unemployment Insurance Bill to cushion Kenyan workers

The bill indicates benchmarking against South Africa where employees contribute 1% of pay matched by 1% from their employer

Ben Shinali, Member of Parliament for Ikolomani has introduced the Unemployment Insurance Bill.

This legislative proposal seeks to establish the Unemployment Insurance Fund, a dedicated financial mechanism funded by both employers and employees, designed to offer critical financial assistance to individuals who experience job loss or their dependents.

At its core, the Unemployment Insurance Bill aims to establish the Unemployment Insurance Fund as a robust financial safety net for Kenyan workers.

Similar to a financial cushion, this fund is intended to provide temporary financial support to individuals facing unemployment until they secure new employment.

What distinguishes this fund is its reliance on contributions from both employers and employees, thereby ensuring a consistent source of financial aid for those in need.

To ensure the effective administration of the Unemployment Insurance Fund, the proposed legislation envisages the establishment of the Unemployment Insurance Authority.

This autonomous body will assume the responsibility of managing the fund, ensuring the equitable allocation of resources, and providing expert counsel to the government on matters related to unemployment insurance.

While the Unemployment Insurance Bill seeks to extend support to as many workers as possible, it acknowledges certain exceptions.

Specific categories of government employees may be excluded from accessing benefits from this fund.

The bill indicates benchmarking against South Africa where employees contribute 1.0% of pay matched by 1.0% by employer towards a similar fund.

However, the determination of these exclusions will hinge upon the regulatory framework established by the government, with the overarching aim of guaranteeing judicious utilization of the fund's resources.