The Sufficiency of Workmen's Compensation Practice in Kenya: the Case of Compensation Amounts Awarded and the Time Taken for Settlement

Abstract

This research study's main objective was to investigate into the sufficiency of Workmen's Compensation in Kenya.

The primary information for the study was gathered by means of q~estionnaires and a number of personal interviews. This information was sought from a sample of 100 employers and 32 insurance companies. While 27 lnsurers responded effectively to the questionnaires only 48 employers did so.

Secondary data was furnished by the, Ministry of Labour (Kenya) from records of injur~d workers while in their course of employment as from 1978 to 1987.

The results showed that the benefits awarded to injured parties under workmen's compensation were

inadequate to cater for future living especially when compared to the service values of individual workers.

Incidental to the above results were the findings that both the new and the old benefit levels did not measure up to one's service value. In addition, the new benefit levels were an improvement of the old benefit levels only under de.ath cases. However, for permanent total and permanent partial incapacities, the new benefit levels were not significantly different from the old benefit levels. It was, thus, implied that there had been no signific_a_ntimprovement on compensation benefits under the latter two cases of disabilities.

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The study also established that the time taken to compensate injured parties was unduly long, a time that took an average of two years from the date of reported accidents to the time of payments.

Factors which influenced the benefit levels were majorly income and the degree of disability. Income was a sole factor influencing compensation levels under death cases while both income and the degree of disability affected benefits awarded for permanent total and partial incapacities. Income determined the earning capacity.of individual workers whereas the degree of • incapacity measured the extent to which the earning qapacity had been affected.

Finally, the fi~dings gave problems related to workmen's compensation and suggestions as to their solutions. Workmen's compensations amc)untswere inadequate and there were delays jn compensating injured parties. The benefit levels could be improved by incorrorating other factors like remaining service life and contemporary economic conditions in determining compensation levels. A minimum benefit should be imposed for all kinds of injuries. Time delays could be eradicated by imposing a time limit within which compensation should­ be payable, otherwise be subjected to an interest charge.