Employers face penalties for late SHA remittance
Failing to contribute or making unauthorised deductions from employees could result in fines up to Sh2 million, imprisonment for up to three years, or both.
Employees whose employers fail to remit their Social Health Authority (SHA) deductions by the ninth of every month risk being locked out of essential healthcare services.
SHA acting Chief Executive Robert Ingasira told senators in the Health Committee that the system is designed to automatically block access to the social health insurance plan for employees whose contributions have not been received on time.
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“The system is automatic and blacklists all employees whose remittances have not been made by the required date,” Ingasira said.
The CEO further warned that employers who fail to remit the deductions within the stipulated timeframe will be subjected to a two per cent penalty on the unpaid amounts.
“Additionally, failing to contribute or making unauthorised deductions from employees could result in fines up to Sh2 million, imprisonment for up to three years, or both,” he stated.
Thousands of employees have been stranded at various medical facilities due to delays in remittances. Ingasira urged employers to comply with their obligations to ensure that their workers continue to access healthcare services.
The CEO noted that SHA has engaged employers to sensitize them on the consequences of non-compliance.
To verify their eligibility for the Social Health Insurance Fund (SHIF), contributors can check using a USSD code on their phones.
However, Ingasira assured the committee that in cases of genuine concerns, SHA has intervened to ensure patients receive the necessary medical services.
He revealed that under SHIF, which operates as a contributory scheme, the fund has disbursed Sh17.8 billion.
Meanwhile, Sh12.2 billion has been paid under the Primary Healthcare Fund, which is supported by the Exchequer.
No payments have been made under the Emergency, Chronic, and Critical Illness Fund due to delays in activation, although the government has expanded coverage for chronic illnesses such as dialysis and chemotherapy.
The Social Health Insurance Act, enacted on October 19, 2023, and effective from November 22, 2023, replaced the National Hospital Insurance Fund (NHIF).
The Act mandates employers to deduct 2.75 per cent of an employee’s gross salary as a monthly contribution, with a minimum of Sh300. Non-salaried households must contribute an annual amount based on the same percentage of household income, with a minimum of Sh300 per month.
Concerns have been raised over the sustainability of SHIF, particularly due to low contributions from non-salaried Kenyans.
Senators recently warned that without addressing this issue, the scheme could struggle to remain viable.
Out of the 22.2 million Kenyans registered under SHA, only 3.9 million are currently contributing to SHIF, which legislators argue is unsustainable.
They called on the Ministry of Health to explore ways of increasing contributions from informal sector workers.
The Parliamentary Budget Office (PBO), which advises MPs on financial matters, has also called for clarity on the Means Testing Instruments (MTI) used to determine household contributions to the fund.
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