Employers face 3 years imprisonment for failing to remit SHA contributions
The government has announced that Kenyan employers risk three years imprisonment or paying a Ksh2 million fine for failing to remit monthly contributions to the Social Health Insurance Fund.
In a notice to employers on Monday, May 26, 2025, the Social Health Authority (SHA) warned that failure to remit the contributions is an offence.
“Not paying contributions to the Social Health Insurance Fund without a valid reason is an offence. Offenders may face fines up to two million shillings and/or up to three years in prison,” the notice read in part.
The authority also urged employers to remit monthly contributions on or before the 9th day of each month, warning that failure to comply may lead to financial penalties and loss of health services for employees.
“Section 27(6) of the SHI Act states: Any person who fails to pay any contribution in respect of any period on or before the day on which payment is due shall be liable to a penalty equal to two per cent of the amount due for contribution for the period for which the contribution remains unpaid and the total annual contributions,” the notice reads.
Streamlining SHA
This comes a few weeks after Health Cabinet Secretary (CS) Aden Duale announced that the government has unveiled plans to streamline contributions to SHA to address persistent delays in remittances, particularly from employers.
The CS announced the new proposal during the Kenya Medical Practitioners and Dentists Union (KMPDU) conference held in Mombasa on May 10, 2025.
CS Duale expressed concern over the high rate of non-remittance by employers, a challenge he said has significantly undermined the effectiveness of SHA operations.
“To mitigate the problem, the Ministry of Health is proposing a system where contributions from all civil servants are deducted directly at the National Treasury to eliminate delays by ensuring timely and consistent remittances to the authority,” he stated.
“I will take the proposal to the Council of Governors so that SHA contributions for all civil servants, both at the national and county levels, are deducted at the source. I will also present it to the National Treasury and the Cabinet,” Duale said.
The authority, which was launched in October 2024, has registered over 20 million Kenyans, including a large number of public servants.
The Social Health Authority was established to provide a more comprehensive and equitable healthcare financing mechanism, replacing the National Health Insurance Fund (NHIF).
