In Kenya’s evolving healthcare landscape, the introduction of the Social Health Authority (SHA) under the Social Health Insurance Act of 2023 marked a significant shift towards universal health coverage.
While this initiative aims to ensure that every Kenyan has access to quality healthcare, the onus isn’t solely on the government or employers, employees must also play an active role in safeguarding their health rights.
Understanding SHA
The SHA replaced the now-defunct National Hospital Insurance Fund (NHIF), streamlining healthcare contributions and services.
As of May 12, 2025, Health Cabinet Secretary Aden Duale announced that 22 million Kenyans have registered under SHA, with 18.5 million active contributors.
Notably, counties like Mombasa and Bomet lead in registration percentages.
SHA’s notice to employers
On May 14, 2025, the Social Health Authority (SHA) issued a public notice warning employers of severe consequences for non-compliance with the Social Health Insurance Act of 2023. The notice outlined the following key points:
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Mandatory Registration: All employers, including those in the national and county governments, as well as private businesses, are required to register with SHA and enroll their employees and dependents.
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Timely Remittance: Employers must remit monthly contributions to the Social Health Insurance Fund (SHIF) on or before the 9th day of each month.
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Penalties for Non-Compliance: Failure to remit contributions without a valid reason constitutes an offense. Offenders may face fines of up to Sh. 2 million and/or imprisonment for up to three years. Additionally, a penalty equal to 2% of the outstanding amount for each month it remains unpaid will be levied.
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Employee Impact: Non-compliance can lead to financial penalties and denial of health services for employees.
The Risks of Employer Non-Compliance
Employers are mandated to register with SHA, enroll all employees and their dependents, and remit monthly contributions by the 9th of each month. Failure to comply can result in penalties, including fines up to KES 2 million or imprisonment for up to three years. However, the immediate consequence for employees is the potential loss of healthcare coverage, leaving them vulnerable during medical emergencies.
Questions to ask your HR about SHA contribution
To ensure you’re not left in the lurch, consider the following proactive steps:
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Confirm registration: Have you been registered under SHA by your employer? Don’t assume, verify.
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Check contribution status: Are your monthly contributions being deducted and remitted on time?
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Understand your benefits: What healthcare services are covered under your SHA plan?
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Know your dependents’ status: Have your dependents been registered, and are their contributions up to date?
Taking action
If you discover discrepancies or lack of information regarding your SHA status:
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Engage HR: Initiate a conversation with your Human Resources department to seek clarification and rectify any issues.
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Contact SHA directly: Reach out to SHA through their official channels for assistance and guidance.
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Stay Informed: Regularly check for updates on SHA policies and your personal contribution status.
