The Government of Kenya has issued new directives to employers regarding their obligations under the Social Health Insurance Fund (SHIF). The Ministry of Health, through the Social Health Authority (SHA), has emphasized timely and correct deductions from employee salaries for health insurance contributions. Non-compliance with the latest SHIF rules will result in strict penalties.
SHA Monthly Remittance Deadline
The SHA has instructed all employers to remit contributions to the Social Health Insurance Fund (SHIF) no later than the 9th day of every month. According to the SHA, these contributions must be calculated at 2.75% of each employee’s gross salary or wage.
“Employers must ensure compliance with Regulation 17(1) of the SHI General Regulations, which mandates that all salaried employees contribute 2.75% of their gross income. The remittance deadline remains the 9th of every month,” reads part of the SHA’s latest directive.
ALSO READ: Private Hospitals Raise Concerns Over SHIF Rollout Amid Contract Delays
The new remittance system became effective from October 2024, with payments expected to be transferred into six designated bank accounts. SHA has made it clear that failure to comply with the SHIF remittance obligations could lead to legal consequences.
Strict Penalties for Non-Compliance with SHIF Regulations
Legal action awaits employers who fail to remit SHIF contributions as required by law. Section 48(1) of the Social Health Insurance (SHI) Act stipulates that non-payment or underpayment of SHIF dues constitutes an offense.
The SHA emphasized that employers have no lawful excuse to withhold SHIF payments. Any employer found guilty of failing to remit contributions within the prescribed period will face charges under the SHI Act.
“Employers who knowingly fail to deduct and remit the correct contributions, or those who make false declarations, will be prosecuted. Any attempts to falsify documents or statements will not be tolerated,” the SHA warned.
ALSO READ: 3 Cons of The Health Insurance Fund Rebrand: From NHIF to SHIF
The Social Health Insurance Act, No. 16 of 2023, which repealed the previous NHIF Act No. 9 of 1998, took effect in November 2023. It introduced new SHIF rules that employers must follow.
With the roll-out of the new SHA benefit packages and tariffs from October 1, 2024, the NHIF’s old rates have been scrapped. Employers are advised to comply immediately to avoid penalties.
“This is a critical reminder to all employers to ensure their organizations are in line with the SHIF regulations starting from the October payrolls. Non-compliance will attract serious legal repercussions,” SHA concluded in its statement.
