Implications for Employers and Employees in Kenya’s New Social Health Insurance Landscape
Executive Summary
In accordance with the public notice dated 16th September 2024, issued by the Ministry of Health, the implementation of the Social Health Insurance Act, No. 16 of 2023 (SHIA) is underway. The Social Health Authority (SHA) has been established, and the Social Health Insurance Fund (SHIF) is set to commence operations on 1st October 2024, replacing the National Health Insurance Fund (NHIF) that has been in place since 1966.
The registration deadline for employers is 30th September 2024.
Employers can manage SHIF contributions through the SHA Employer Portal at https://sha.go.ke. This portal enables employers to:
- Register employees and their dependents with SHA.
- Submit SHIF contributions on behalf of employees.
- Generate reports and statements.
Steps to Access and Use the Portal:
- Create an Account: Visit the SHA website to set up an employer account.
- Verify Account: Follow the provided instructions to verify your account.
- Add Employees: Input employee details for registration with SHA.
- Make Contributions: Utilize the portal to submit SHIF contributions promptly.
Payment Dates:
Contributions are due by the 9th of every month. Payments received on or before 9th October 2024 will be credited to NHIF. Subsequent payments received from 9th November 2024 will be credited to SHIF.
Contributions:
The contribution structure for SHIF is as follows:
- For salaried employees: The monthly contribution rate is 2.75% of gross salary, with a minimum contribution of KES 300 per month and no maximum limit. Employers must remit this amount by the 9th of the following month.
- For non-salaried individuals: Households will make an annual contribution at a rate of 2.75% of total household income, with a minimum contribution of KES 300 per month and no maximum annual payment. This must be submitted 14 days before the annual contribution deadline.
Offenses and Penalties:
Failure to make timely payments will incur a penalty of 2% of the unpaid contribution for the relevant period, and the total annual contribution must be settled simultaneously.
Employers who fail to pay contributions or make unauthorized deductions from employees will face a fine of up to KES 2 million or imprisonment for a term not exceeding three years, or both. Additionally, individuals who provide false statements or representations to obtain benefits will be subject to similar penalties.
Let’s Talk
For further information, professional advice, or assistance regarding compliance or any other tax-related issues, please contact us at info@bellmount.co.ke or call us at +254725806441