The Government of Kenya through the Ministry of Health has put employers on caution over contributions to Social Health Insurance Fund (SHIF).
In a statement, the Social Health Authority (SHA) directed employers to remit monthly contributions by the 9th day of every month to the Social Health Insurance Fund (SHIF) at the rate of 2.75 per cent of the gross salary or wage.
“Regulation 17(1) of SHI General Regulations further provides that a household whose income is derived from salaried employment shall pay a monthly contribution to the Social Health Insurance Fund at the rate of 2.75 per cent of the gross salary or wage, to be remitted by the ninth 9th day of every month,” read the statement in part.
Legal action will be taken against employers who fail without lawful excuse to pay to the Social Health Insurance Fund (SHIF) within the period prescribed by the Act.
The remittances are expected to be wired to six bank accounts effective this month of October. “This is to inform all Employers to ensure compliance to SHI Act No. 16 of 2023 and the Regulations on remittance of contributions in the respective October 2024 payrolls,” SHA added.
Section 48(1) of the Social Health Insurance (SHI) Act provides for offenses for any person or a contributing employer who does not remit any contribution that he or she is liable to pay.
Further, section 27(2)(a) of the SHI Act provides that all statutory contributions from wages or salary shall be deducted monthly, by the employer at the rate prescribed under the Act.
“This is to inform all Employers to ensure compliance to SHI Act No. 16 of 2023 and the Regulations on remittance of contributions in the respective October 2024 payrolls,” read SHA’s statement.
The Social Health Insurance Act, No. 16 of 2023 (SHI Act), was enacted on 19th October 2023, with a commencement date of 22nd November 2023, repealing the NHIF Act No.9 of 1998.
Legal action will be taken against employers who knowingly make any deduction from the wages of the employee other than a deduction that he or she is authorized to make for the purpose of the SHI.
Equally, employers who intentionally make any false statement, or representation, or produce any document or information that or they know to be false will be arrested.
Effective October 1 the old NHIF-approved benefit packages and rates ceased to apply as the newly gazetted SHA Benefits and tariffs are rolled out to all Kenyans. As such SHA has appealed to employers to act accordingly to avoid legal actions.
“Kindly ensure that all employers in your organisation are informed accordingly,” SHA ended.
