A newly introduced health insurance cover is forcing a rethink of premiums charged for medical insurance in Kenya, as more players seek to extend the intake below the traditional upper middle class bracket.

The cover launched jointly by the National Health Insurance Fund (NHIF) and the Co-operative Insurance Company (CIC) has been structured for about 100,000 households that are members of the Kenya Women Finance Trust (KWFT), a specialised micro finance organisation.

The cover is priced at Sh10 per day or Sh3,600 per year and underwrites all in-patient expenses for a member's entire family with no exclusion clauses for chronic illnesses and maternity. Surgery costs above Sh15,000 are also covered. The only restrictions are that the expenses be incurred in appointed private, public and mission hospitals for up to 180 days.

The premiums are seen as affordable to the target group, whose small businesses earn about Sh150 per day and who service loans from KWFT starting at Sh20,000.