Nairobi, April 11 -- The National Health Insurance Fund (NHIF) missed out on Sh39 billion premiums after 80 percent of members drawn from the informal sector defaulted on monthly contributions, posing a sustainability threat to the public insurer.

An actuarial report on the NHIF has revealed that just 1.6 million of the 8.1 million registered informal sector members were making the Sh500 monthly contributions, exposing millions of Kenyans to out-of-pocket medical bills. This means more than 80 percent are in default.

The report, prepared by Kenbright Actuarial & Financial Services, says the voluntary contribution option is draining the NHIF since the majority of those keeping up with payments have chronic sicknesses, meaning they utilis...