45,112 employers face crackdown for failing to remit SHA deductions amounting to Sh21 billion

Thousands of employers across Kenya are under the spotlight for failing to remit mandatory deductions to the Social Health Authority (SHA), with the Ministry of Health launching a bold compliance drive to recover more than Sh21 billion in unpaid contributions.

Medical Services Principal Secretary Ouma Oluga, speaking during the launch of the SHA Rapid Results Compliance Initiative in Nairobi on Monday, revealed that over 12,900 employers in Nairobi alone have not submitted the required 2.75 per cent statutory deductions, accumulating a debt of more than Sh3 billion.

“The Initiative in Nairobi is targeting recovery of over Sh3 billion from 12,900 non-compliant employers. Employers must remit the 2.75% health deduction monthly or face enforcement under the law,” he said.

Oluga said the enforcement campaign starts in Nairobi and will be expanded to Kiambu, Kajiado, and other counties in the coming weeks.

He stressed that private sector non-compliance was hurting the government’s ability to pay hospitals and offer services under the new universal health coverage plan.

“Today marks the beginning of a nationwide push to strengthen compliance with the Social Health Insurance Act,” the PS said.

“That is not a small figure, and it directly impacts our ability to pay hospitals and offer healthcare services to Kenyans,” he added.

The PS explained that out of the 98,112 employers registered on the SHA portal, only 53,000 have complied with the new law, which came into force in October 2023. The remaining 45,112 are being targeted for enforcement and support.

“If you are an employer who deducts money from employees’ salaries but delays or fails to remit it to the SHA, the government is coming for you,” Oluga warned.

He clarified that the compliance effort is not meant to punish businesses but to build a stronger and fairer health system for all.

“Let me be clear: this is not about punishment. It is about building and strengthening partnerships and shared responsibility,” the PS said.

Oluga said SHA officers would work directly with employers to offer assistance, explain obligations, and ensure full compliance.

He also noted the launch of flexible payment options such as “Lipa SHA Pole Pole” to ease compliance for workers in the informal sector.

The PS called attention to the real-life impact of non-remittance, especially on patients who find themselves in disputes with hospitals despite believing they are fully covered.

“We have patients in hospitals who are aware they are fully registered with the Social Health Authority by virtue of being employed, but their employers have not yet remitted the money,” Oluga said. “This is some of the noise across the country that SHA is not working, and we want to end this once and for all.”

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• 112 employers face crackdown for failing to remit SHA deductions amounting to Sh21 billion

PS Oluga underlined the legal requirement for employers to deduct and remit 2.75 per cent of gross salaries to SHA by the 9th of every month.

The recovery of the Sh21 billion, he said, would enable timely hospital payments by the 14th of every month and reinforce the broader universal health coverage strategy.

“Employers must fulfil their legal obligations. A functioning health system requires collective effort,” he said.

According to the Ministry, over 24 million Kenyans have already enrolled under the SHA system, which is anchored on digital transparency and real-time tracking of contributions.