Social Health Authority (SHA) has warned employers regarding the timely remittance of employee health contributions, emphasizing the critical importance of compliance with statutory obligations. This warning comes amid growing concerns over a rising trend of late remittances, which threaten the integrity of Kenya’s social health schemes and employee welfare programs (1).
The Growing Issue of Late Contributions
Employers across various sectors have increasingly delayed submitting their required contributions to the Social Health Assistance (SHA) fund. The SHA, which manages employee health benefits, has highlighted the negative consequences of such delays, including disruptions to employee health services and potential legal repercussions (2).
Key Highlights:
- Late remittances disrupt employee access to healthcare services (1).
- Employers face heavy fines and jail terms for non-compliance (2).
- The SHA is intensifying its oversight to ensure timely payments.
SHA’s Strict Stance and Legal Implications
The SHA has cautioned employers that persistent late payments could lead to severe penalties, including hefty fines and imprisonment. These measures are designed to enforce discipline among employers and safeguard employee rights (1).
Notable Points:
- Heavy fines are imposed on employers who delay contributions, with penalties reaching up to KSh 2 million.
- Jail terms of up to three years are now a possibility for repeat offenders (2).
- The SHA has vowed to take strict legal action against non-compliant entities.
Impact on Employers and Employees
This directive is significant for all employers, as it underscores the need for strict adherence to statutory remittance schedules.
How This Affects Employers:
- Increased compliance costs due to penalties.
- Potential damage to company reputation.
- Greater scrutiny from regulatory authorities.
For Employees:
- Improved access to healthcare services.
- Assurance that benefits are protected by law.
- Reduced risk of service disruptions caused by late payments (1).
The Broader Context: Medical Cover Contributions and Fines
In addition to SHA remittances, recent reports highlight that late payments of medical cover contributions also attract substantial fines and jail terms. This underscores the Kenyan government’s commitment to enforcing strict compliance across all employee welfare schemes (2).
Summary of Recent Enforcement Measures:
- Employers are now under heightened scrutiny for timely remittance.
- Legal penalties serve as a deterrent against non-compliance.
- The government aims to protect employee rights and ensure sustainable health schemes.
Final Thoughts
The SHA’s warning sends a clear message to employers: timely remittance of employee contributions is not optional but mandatory. Employers are strongly advised to review their payroll and remittance processes to align with the new enforcement measures. Failing to do so could result in significant legal and financial repercussions, ultimately affecting the company’s reputation and employee welfare (1; 2).
FAQs
1. Who is required to make SHA contributions?
All formally employed individuals must have their SHA contributions deducted and remitted monthly by their employers. Self-employed and informal sector individuals can register voluntarily and make payments based on means testing of their income (SHA official site, BDO EA).
2. How much do I need to contribute to SHA?
The contribution rate is 2.75% of the gross monthly salary for formally employed individuals, with a minimum monthly contribution of KES 300 and no maximum limit. For informal or self-employed households, contributions are calculated annually based on household income using a means testing tool, with a minimum of KES 300 per month equivalent (Ministry of Health Press Release, SHA FAQs PDF).
3. How can I make SHA payments if I am self-employed?
Self-employed individuals can register on the SHA portal or at service centers like Huduma Centres and make payments via mobile money platforms such as M-Pesa (Paybill 200222), bank transfers, or authorized payment centers. The payment amount is determined after completing the means testing questionnaire online (Willow Health Media).
4. What happens if an employer delays or fails to remit SHA contributions?
Late or non-payment of SHA contributions attracts penalties including fines and possible imprisonment. The SHA has warned employers that persistent late remittances disrupt employee access to health care and that strict enforcement measures are in place to ensure compliance (The Star, 2025, Nairobi Wire, 2025).
Stay informed and ensure your organization adheres to all statutory obligations to avoid penalties and safeguard employee benefits.
References:
- https://www.the-star.co.ke/news/2025-05-26-sha-fires-warning-to-employers-over-late-remittances
- https://nairobiwire.com/2025/05/late-payment-of-medical-cover-contributions-attracts-heavy-fines-and-jail-terms-sha-warns.html
