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It is well established that medical benefits is an important employee benefit. The cost of medical is beyond most Kenyans in the event of serious illness. Therefore if an employer is to attract good employees he/she cannot avoid to include medical in the employment package.

Medical can be divided into two parts: hospitalization and out patient medical. Out patient medical is very difficult to handle because of fraud. Most insurance companies do not provide outpatient insurance. However they agree to manage it through funds made available by the employer.

There are good companies providing in-patient covers. The limits depend on the insured on how much he can afford. It varies from as little as Kshs. 200,000/- per family per year to Kshs 10,000,000/-.