Three Insurance firms eye Sh5.6bn medical cover for teachers

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The lucrative multi-billion-shilling tender to provide medical cover to 298,000 teachers in Kenya has attracted bids from three insurance companies.

Liaison Insurance, AoN Kenya and Clarkson Insurance are eyeing the annual medical cover worth Sh5.6 billion.

The contract will be for three years, unlike previously when it was annual.

The trio has quoted between Sh14.7 billion and Sh17.7 billion for the three-year contract.

Already, the Teachers Service Commission’s tender evaluation committee is scrutinising bids for the medical cover to teachers and their families.

The contract is currently managed by AoN Kenya.

In July, AoN received a three-month extension to help TSC get a new provider following expiry of the current contract awarded in May 2015.

The TSC remained tight-lipped on the exercise, with sources indicating that the bidding was very competitive.

TSC chief executive officer Nancy Macharia declined to comment on the matter.

About 233,000 teachers across the country are registered with the scheme, with 423,457 dependants, making a total of 657,367 members.

Tutors lost their monthly medical allowance in 2015 — which was ranging between Sh767 and Sh4,412 per month, depending on job group — to finance the medical scheme.

Under the initiative, a teacher and four beneficiaries are entitled to an inpatient, outpatient, maternity, dental cover and group insurance for funeral expenses, among other services.