SHA Acting CEO Elijah Wachira directed employers to remit their monthly contributions by the 9th day of every month to the Social Health Insurance Fund (SHIF)
The Kenyan government, through the Ministry of Health, put all employers on notice on Monday, October 14, regarding the Social Health Authority (SHA) contributions.
In a statement, SHA Acting CEO Elijah Wachira directed employers to remit their monthly contributions by the 9th day of every month to the Social Health Insurance Fund (SHIF) at the rate of 2.75 per cent of the gross salary or wage.
“Regulation 17(1) of Social Health Insurance (SHI) General Regulations further provides that a household whose income is derived from salaried employment shall pay a monthly contribution to the Social Health Insurance Fund at the rate of 2.75 per cent of the gross salary or wage, to be remitted by the 9th day of every month.
“This is to inform all employers to ensure compliance with SHA Act No. 16 of 2023 and the regulations on remittance of contributions in the respective October 2024 payrolls,” Wachira stated.
Health Cabinet Secretary (CS) Deborah Barasa during a media breakfast meeting held at Sarova Panafric in Nairobi on September 18, 2024. /MINISTRY OF HEALTH
The SHA CEO further noted that Section 48(1) of the Social Health Insurance (SHI) Act provides for offenses for any person or a contributing employer who fails to remit any contribution that he or she is liable to pay without legal excuse.
Wachira also warned that an employer will be liable for offense if they knowingly make any deduction from the wages of the employee other than a deduction that he or she is authorized to make for the purpose of the SHI Act.
Equally, employers who intentionally make any false statement, or representation, or produce any document or information that they know to be false will be arrested.
The Social Health Insurance Act, No. 16 of 2023 (SHI Act), was enacted on October 19, 2023, with a commencement date of November 22, 2023, repealing the NHIF Act No. 9 of 1998 before SHA was rolled out on October 1, 2024.
Further, section 27(2)(a) of the SHI Act provides that all statutory contributions from wages or salary shall be deducted monthly, by the employer at the rate prescribed under the Act.
The remittances are expected to be wired to six bank accounts effective this month of October. “This is to inform all Employers to ensure compliance to SHI Act No. 16 of 2023 and the Regulations on remittance of contributions in the respective October 2024 payrolls,” SHA added.
“Kindly ensure that all employers in your organisation are informed accordingly,” SHA ended.