MP Ben Shinali proposes Unemployment Insurance Bill to cushion Kenyan workers

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.

National Assembly Kenya National Assembly Kenya Pulse Live Kenya

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.

A general view taken on March 26, 2015 in Nairobi shows the Kenyan parliament, as President Uhuru Kenyatta addresses two Houses the Senate and the National Assembly. President Kenyatta's speech comes against the backdrop of rising corruption and insecurity in the country. AFP PHOTO/SIMON MAINA (Photo credit should read SIMON MAINA/AFP via Getty Images) Pulse Live Kenya

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.