NAIROBI, Kenya – The Social Health Insurance Fund (SHIF) has issued a stern reminder to employers across the country, urging them to comply with the updated remittance regulations outlined in the Social Health Insurance (SHI) Act of 2023.
The notice comes ahead of the October 2024 payroll deadline, with SHIF warning of penalties for those who fail to meet their legal obligations.
SHIF Acting CEO, Elijah Wachira, emphasized that employers are required to deduct contributions from employees’ wages and remit them to the fund by the 9th day of each month.
These contributions must be deposited into the designated SHIF accounts as part of the new system replacing the National Health Insurance Fund (NHIF).
“The SHI Act, which came into force on October 1, 2024, mandates strict adherence to the new remittance schedule. Employers who fail to comply risk facing legal consequences, including fines under Section 48(1) of the Act,” said Wachira.
The offences outlined in the SHI Act include failure to remit deductions on time, making unauthorized deductions from wages, and providing false information or documents to the authorities.
SHIF has urged employers to ensure their payrolls reflect the updated contributions in compliance with the law and avoid exposing their organizations to costly penalties.
The new regulations, part of a broader overhaul of the health insurance system, require all salaried employees to contribute 2.75% of their gross income to the Social Health Insurance Fund.
This shift represents a significant change from the old NHIF structure, with the new SHA Benefits and Tariffs set to be rolled out nationwide.
Employers are further encouraged to notify their employees about the changes and ensure all deductions are accurately reflected in the October 2024 payroll to avoid any future legal complications.
The Social Health Insurance Act No. 16 of 2023, which took effect on November 22, 2023, replaces the NHIF Act of 1998, bringing with it a series of reforms aimed at enhancing the affordability and accessibility of healthcare for all citizens.
The notice comes ahead of the October 2024 payroll deadline, with SHIF warning of penalties for those who fail to meet their legal obligations.
SHIF Acting CEO, Elijah Wachira, emphasized that employers are required to deduct contributions from employees’ wages and remit them to the fund by the 9th day of each month.
These contributions must be deposited into the designated SHIF accounts as part of the new system replacing the National Health Insurance Fund (NHIF).
“The SHI Act, which came into force on October 1, 2024, mandates strict adherence to the new remittance schedule. Employers who fail to comply risk facing legal consequences, including fines under Section 48(1) of the Act,” said Wachira.
The offences outlined in the SHI Act include failure to remit deductions on time, making unauthorized deductions from wages, and providing false information or documents to the authorities.
SHIF has urged employers to ensure their payrolls reflect the updated contributions in compliance with the law and avoid exposing their organizations to costly penalties.
The new regulations, part of a broader overhaul of the health insurance system, require all salaried employees to contribute 2.75% of their gross income to the Social Health Insurance Fund.
This shift represents a significant change from the old NHIF structure, with the new SHA Benefits and Tariffs set to be rolled out nationwide.
Employers are further encouraged to notify their employees about the changes and ensure all deductions are accurately reflected in the October 2024 payroll to avoid any future legal complications.
The Social Health Insurance Act No. 16 of 2023, which took effect on November 22, 2023, replaces the NHIF Act of 1998, bringing with it a series of reforms aimed at enhancing the affordability and accessibility of healthcare for all citizens.
