The Social Health Insurance Fund (SHIF) has issued a public notice to all employers, reminding them of their obligation to comply with the new remittance regulations under the Social Health Insurance
SHA Acting CEO Elijah Wachira said contributions must be deducted and remitted by the 9th day of every month and in the relevant bank accounts.
Employers are also reminded to ensure compliance with the SHI Act in their October 2024 payrolls and make timely remittances to SHIF.
Employers are warned that failure to comply with these regulations could lead to penalties under Section 48(1) of the SHI Act.
The said offences include failure to remit contributions on time, making unauthorized deductions from employees' wages, and providing false information or documents.
Employers are urged by SHI to notify all employees in their organizations to ensure full compliance with the SHI Act and avoid potential legal consequences.
The directive is in conformity with the Social Health Insurance Act, No. 16 of 2023.
The Act, which was enacted on October 19, 2023, and took effect on November 22, 2023, replaces the previous NHIF Act No. 9 of 1998.
The SHI Act mandates significant changes in health insurance contributions for all salaried employees.
It has been effective since 1st October 2024.
The old NHIF-approved benefit packages and rates will no longer apply, as the newly gazetted SHA Benefits and Tariffs are rolled out across the country.
Section 27(2)(a) of the SHI Act requires employers to deduct statutory contributions from their employees' wages or salaries every month, at the rate prescribed by the Act.
Regulation 17(1) of the SHI General Regulations stipulates that all households earning an income from salaried employment must contribute to the Social Health Insurance Fund at a rate of 2.75% of their gross salary.