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Thursday, May 29, 2025

Late Payment of Medical Cover Contributions Attracts Heavy Fines and Jail Terms, SHA Warns

The Social Health Authority (SHA) has directed all employers across Kenya to comply with mandatory medical cover contributions under the Social Health Insurance (SHI) Act, 2023.

In an official notice, the Authority reminded employers of their legal duty to register with SHA and remit contributions on time. The SHI Act requires all employers—including those in national and county governments and the private sector—to register with the Authority, enroll their employees and dependents, and submit monthly payments to the Social Health Insurance Fund.

“Employers must enroll all staff in the SHA system, keep their details updated, and encourage them to register their dependents,” the notice stated.

SHA also warned employers about consequences of failing to remit contributions by the 9th of every month. The Authority emphasized that late payments without valid reasons constitute an offense.

“Not paying contributions to the SHIF without a valid reason is an offence,” the notice stated.

Under Section 27(6) of the SHI Act, employers who pay late face a penalty of two percent of the overdue amount for each period the payment remains outstanding. Persistent non-compliance may lead to fines of up to two million shillings, imprisonment for up to three years, or the loss of health services for employees.

Employers can register their organizations through the official SHA employer portal at https://employers.sha.go.ke/registration/corporate. For assistance with registration, compliance, or payments, employers can contact SHA via the toll-free line 147, visit www.sha.go.ke, or email [email protected].

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