Editor's Review

Contributors must adhere to strict payment deadlines to avoid costly penalties.

The Social Health Authority (SHA) has issued a stern warning to employers regarding the timely remittance of employee contributions, threatening penalties for late payments.

In a notice released on Friday, September 5, the authority emphasized that all employers and contributors under the Social Health Insurance Act No. 16 of 2023 must adhere to strict payment deadlines to avoid costly penalties.

According to the notice, monthly SHA contributions are due by the 9th of every month, as stipulated in Legal Notice 22(1) of the SHA (General) Regulations, 2024.

"Employers face a 2% monthly penalty on outstanding contributions, with the penalty applying each month until full payment is made," the notice states.

Additionally, late remittance triggers suspension of access to healthcare benefits, meaning employees cannot access medical services until all arrears and penalties are settled.

The authority also outlined several compelling reasons for compliance, including avoiding costly penalties, ensuring employees maintain uninterrupted access to health services, and staying compliant with national law requirements.

Earlier this week, President William Ruto made significant announcements regarding the SHA system, revealing that the government would cover the costs for 1.5 million Kenyans who could not afford the registration fees.

"We have identified 1.5 million Kenyans who cannot afford the SHA registration fee. The Government will cover the cost for all of them," the President's statement indicated.
President William Ruto.


This development follows earlier reforms announced by President Ruto in June, when he introduced the "Lipa SHA Pole Pole" system – a flexible payment solution allowing informal sector workers to make contributions in manageable installments.

The system, accessible through the *147# USSD code, enables workers to pay monthly, weekly, or even daily based on their financial capacity.

The President had noted that this innovation addresses persistent challenges faced by informal sector workers who often struggle with irregular income patterns that make lump-sum annual payments difficult.

The government has also committed substantial resources to strengthening the Taifa Care program. Ruto emphasizes that sufficient funding has been allocated to provide free primary healthcare services to all registered Kenyans at public and SHA-contracted facilities.