SMEs urged to make employee health insurance a business priority

What the report says

Ugandan small and medium-sized enterprises are being encouraged to treat employee medical insurance as a business priority, with industry figures arguing that health cover can support productivity, retention and resilience. The call comes amid Uganda’s heavy reliance on out-of-pocket healthcare spending and relatively low insurance coverage, which can leave workers and their families exposed to large medical bills.

In the Nile Post report, Aly S. Maherali, vice chair of MIC Global Risks Insurance Brokers (Uganda) Limited, said SMEs may face wider business disruptions when staff cannot access affordable care. He pointed to risks such as absenteeism, lower output and higher turnover, especially because smaller firms often have limited staffing and less room to cover for absent employees. He argued that employers should consider whether a healthcare package fits their workforce, rather than focusing only on the most expensive option.

The article cites World Bank and Ministry of Health data showing that direct household payments remain a major source of healthcare financing in Uganda, while insurance coverage remains low. It also notes that Uganda’s private sector is dominated by small enterprises, making employee welfare decisions significant beyond individual firms. More broadly, the report places the discussion within Uganda’s push toward better health financing and wider use of insurance, including private and community schemes, as part of progress toward universal health coverage.