The Ministry of Health has flagged 12,900 employers in Nairobi for failing to remit deductions of their employees for the national health program.
In a statement dated Monday, June 23, the Ministry noted that all employers were required to remit all employee deductions by the 9th of each month.
The Ministry stated that the failure of the employers had affected service delivery.
It is estimated that the unremitted deductions stand at Ksh3 billion, hence the nationwide campaign launched on Monday.
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"In Nairobi alone, over 12,900 employers have been flagged for non-compliance, with outstanding statutory deductions exceeding Ksh3 billion. These arrears directly affect the Ministry’s ability to pay hospitals and sustain healthcare services," read the statement in part.
"Employers are required to remit the 2.75% statutory contribution by the 9th of every month. Where engagement fails, legal action will be taken to protect contributors and maintain system sustainability."
On his part, Medical Services PS Ouma Oluga explained that the campaign was only meant to enhance compliance, further calling on employers to cooperate.
The first phase of compliance checks is expected to take place in Nairobi, Kajiado, and Kiambu.
"This is not punishment - it’s partnership. SHA will engage with employers, provide support, and ensure they understand their legal responsibilities to contribute to the national health insurance scheme," he stated.
Apart from disrupting SHA services, delayed remittances pose risks for employees who depend on the medical cover for themselves and their families.
As per the law, the employers are the individuals legally mandated to submit the deduction to the government.
Meanwhile, the government introduced Lipa SHA pole pole to enroll more Kenyans who are working in the informal sector.