Six banks selected to collect contributions to Social Health Insurance Fund
By Lucy Mumbi |
He emphasised the importance of these banks, stating that they are already familiar to employers for various services.
Six prominent financial institutions have been appointed as the official collection accounts for employer contributions to the Social Health Insurance Fund (SHIF).
The banks include Kenya Commercial Bank (KCB), Sidian Bank, Co-operative Bank, Equity Bank, Absa and Diamond Trust Bank (DTB).
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Medical Services Principal Secretary Harry Kimtai announced that the decision was reached after consultations with employers.
He emphasised the importance of these banks, stating that they are already familiar to employers for various services.
In an interview on Monday, the chairperson of the Social Health Authority (SHA) Abdi Mohamed, explained that employers expressed a preference for these banks when discussing payment methods.
“We also have our pay bill number for individuals who wish to pay via M-Pesa by following these steps to help flatten the curve. Generate the eSlip number, and use M-Pesa pay bill 200222 to pay,” he said.
However, concerns have emerged regarding why remittances will be processed through a separate pay bill rather than the unified government pay bill introduced by President William Ruto’s administration last year.
“The government's single pay bill and even e-Citizen are still marred by a number of challenges which we did not want to derail us," Mohamed said.
In August 2022, President Ruto ordered the closure of all non-designated government paybill numbers, directing a transition to a single payment platform.
He mandated all ministries to terminate non-designated payment platforms and migrate to the newly assigned paybill number, 222222, to streamline government services.
Beginning this October, the government will start deducting 2.75 per cent from the payslips of salaried workers—representing approximately 12 per cent of the country’s population—for the SHIF.
Previously, contributions for salaried employees ranged from Sh150 to Sh1,700 monthly, while self-employed Kenyans paid Sh500. The NHIF had capped contributions at Sh1,700 for those earning Sh100,000 or more.
The SHIF now requires those earning Sh20,000 to contribute Sh550, while individuals with salaries of Sh50,000 and Sh100,000 will pay Sh1,375 and Sh2,750 respectively.
Higher earners face increased deductions, with those earning Sh200,000 contributing Sh5,500, and those with a monthly income of Sh1 million or more paying up to Sh27,500.
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