Hefty Penalties & Fines Kenyans Face for Failing to Remit New Social Health Insurance Deductions

Photo of President Ruto in Kericho Green Stadium during the Mashujaa day celebrations on October 20, 2023
Photo of President Ruto in Kericho Green Stadium during the Mashujaa day celebrations on October 20, 2023
Photo
PSC

Kenyans who fail to register for the Social Health Insurance Fund will miss out on government services after the Social Health Insurance Act took effect. 

According to the Social Health Insurance Fund Bill, which came into law following its ascension by President William Ruto on October 19, one will be required to show proof of their registration into the scheme before accessing government services.

The services include those sought from the 47 county government offices.

"Any person who is registerable as a member under this Act shall produce proof of registration with the Social Health Insurance Fund as a precondition of dealing with or accessing public services from the national government, county government or a national or county government entities," reads the act in part.

Health Cabinet Secretary Susan Nakhumicha attending a meeting at Afya House on May 10, 2023.
Health Cabinet Secretary Susan Nakhumicha attending a meeting at Afya House on May 10, 2023.
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Ministry of Health

On the other hand, employers must remit the monthly deductions on time.

Employers who fail to submit the deductions at the required time will face charges, which attract a fine of Ksh1 million.

An imprisonment term not exceeding three years has also been prescribed for such acts.

"Any person who knowingly makes any deduction from the wages of the employee in respect of any contribution which he is liable as a contributing employer to pay under this Act, other than a deduction which he is authorized to make by this Act, commits an offence.

"They shall be liable to liable on conviction to a fine not exceeding Ksh1 million or to imprisonment for a term not exceeding three years, or to both," reads the Act in part.

Those who make false statements with the purpose of obtaining any benefit for themselves will also be liable to a fine of Ksh1 million.

The Act is yet to come into force with the Ministry of Health under Cabinet Secretary Susan Nakhumicha expected to release guidelines on the monthly deductions.

Various reports suggest that employed Kenyans will part way with 2.75 per cent of their salary in addition to the 1.5 per cent of the Housing Fund.

A photo of  the NHIF building in Nairobi
A photo of the NHIF building in Nairobi's Upper Hill taken on March 4, 2020.
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NHIF