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SHA Orders Employers to Comply with Health Fund Rules or Face Penalties

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NAIROBI, Kenya— The Social Health Authority (SHA) has issued a stern warning to employers across Kenya, urging them to register their organisations and remit monthly contributions to the Social Health Insurance Fund (SHIF) without delay—or risk steep penalties, including jail time.

In a public notice issued Monday, SHA directed all public and private sector employers to register on the official SHA employer portal, enrol their employees and dependents, and submit contributions by the ninth day of each month.

“Enrol all employees in the SHA system, ensure their details are up to date, and encourage them to add their dependents,” the notice read. “Not paying contributions to the Social Health Insurance Fund without a valid reason is an offence.”

Failure to comply could result in significant consequences: a two percent monthly penalty on outstanding contributions, fines of up to Sh2 million, or even imprisonment for up to three years.

Beyond legal risks, non-compliance could also jeopardise employees’ access to vital health services, the Authority warned.

“Employees in defaulting organisations may lose access to essential healthcare,” the notice stated.

An online portal has been provided to simplify registration and keep employee records updated.

Employers needing assistance are encouraged to contact SHA via its toll-free number (147), visit the official website, or reach out via email.

The notice comes amid rapid uptake of the SHIF system, which replaced the now-defunct National Hospital Insurance Fund (NHIF) last year as part of Kenya’s push for universal health coverage.

Health Cabinet Secretary Aden Duale reported that more than 22 million Kenyans have registered with SHA since its launch eight months ago, with April 2025 seeing a record 775,000 new sign-ups.

Of these, 18.5 million are active members, and over 3.6 million transitioned from NHIF.

The majority of registrants are young adults aged 18–35 (6.3 million), followed by 5.3 million aged 36–55.

Another 4.38 million are children, and 2.5 million are over 55.

On average, the system is currently seeing 50,000 new registrations and 25,000 means assessments per day, bringing in roughly Sh20 million in daily contributions, according to the ministry.

Anthony Kinyua
Anthony Kinyua
Anthony Kinyua brings a unique blend of analytical and creative skills to his role as a storyteller. He is known for his attention to detail, mastery of storytelling techniques, and dedication to high-quality content.

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