Employers face penalties for failing to remit SHA contributions
An online portal has been provided to facilitate registration and ensure employee records, including those of their dependents, are up to date.
The Social Health Authority (SHA) has directed employers to register, enrol their employees and their dependents, and remit monthly contributions to the Social Health Insurance Fund (SHIF) by the 9th of each month.
In a public notice, the Authority emphasised that the Social Health Insurance Act, 2023, mandates all employers—including national and county governments, as well as private entities—to contribute to the fund.
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“Section 27(1) of the SHI Act 2023, part (c) states that every national government, (d) county government, and (e) any other employer operating within the country is liable to contribute to the fund,” the notice reads.
SHA officials also outlined the penalties for non-compliance. Under Section 27(6) of the Act, any employer who fails to remit contributions by the due date will be liable to pay a penalty amounting to two per cent of the outstanding amount for each month it remains unpaid.
In addition, defaulters risk fines of up to Sh2 million or imprisonment for up to three years.
“Failure to remit contributions to the SHIF without a valid reason constitutes an offence. Offenders may face fines of up to two million shillings and/or a prison term not exceeding three years. Non-compliance may also result in financial penalties and denial of health services for employees,” the SHA stated.
In view of these potential consequences, the Authority urged employers to act promptly. An online portal has been provided to facilitate registration and ensure employee records, including those of their dependents, are up to date.
Employers in need of assistance with registration and compliance may contact SHA via the toll-free number 147, or access further guidance on the official SHA website or through email.
On Tuesday, during a meeting of the Social Sector National Development Implementation Committee (NDIC) in Nairobi, the Principal Secretary for Medical Services, Dr Ouma Oluga, announced that over 22 million Kenyans had already registered under the SHA.
He further reported that SHA’s digital systems were now fully operational, supporting the smooth delivery of services across the country.
“Healthcare providers have already served 1.2 million Kenyans, with claims processed amounting to Sh45 billion,” said Dr Oluga, noting that SHA was transforming the health financing landscape and shielding many citizens from falling into poverty due to hospital bills.
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