FALSE: NHIF AND NSSF ARE NOT REQUIREMENTS FOR A BUSINESS START UP
There has been a claim on Twitter that a person needs to pay deductions for National Hospital Insurance Fund(NHIF) and National Social Security Fund( NSSF) as part of starting a business venture.
Upon President William Ruto’s ascension to power, the president promised that a Hustler Fund would be rolled out on Ist December 2022. This fund pointed out that the applicant would receive Ksh 50,000 upon successful application.
There has been a claim making rounds that NHIF and NSSF are deductions that are necessary for those starting up business ventures using the Hustler Fund.
With the tough economic times and lack of employment opportunities, there has been a lot of debate around the Hustler Fund. Ruben FM looked at the requirements for a business startup in Kenya to verify the validity of this claim.
According to Career Point Kenya, the following are the requirements for a business start up in Kenya: business name or company registration; city council business permit; food/health related permits and safety certificate.
NHIF and NSSF on the other hand, are government schemes mandatory for all employers and employees. Self employed individuals may also subscribe to the schemes but it is not mandatory. Under the schemes, members are able to access: retirement or age benefits, withdrawal benefits the survivor’s beneficiaries, invalidity benefits, funeral grants and healthcare.
Therefore, the claim that NHIF and NSSF are necessary when starting a business start up is false and misleading.
This fact check has been published by Ruben FM with support from Code for Africa’s PesaCheck and African Fact-Checking Alliance.