With the enactment of the Social Health Insurance (SHI) Act No. 16 of 2023, a new chapter in Kenya’s health insurance landscape has begun. The Act, which repealed the long-standing NHIF Act No. 9 of 1998, aims to streamline health insurance payments and expand coverage for all Kenyans. As the country transitions from the old National Hospital Insurance Fund (NHIF) to the new Social Health Insurance Fund (SHIF), employers must stay informed about the requirements and deadlines for remitting SHIF contributions.
Here’s a detailed guide on how employers can comply with the SHIF regulations and ensure timely contributions to the Social Health Insurance Fund (SHIF).
Key Highlights of the Social Health Insurance Act 2023
The SHI Act No. 16 of 2023 was enacted on 19th October 2023, with its implementation set to begin on 22nd November 2023. This Act has set out specific regulations for the remittance of health insurance contributions. Employers should be particularly aware of the changes in benefits, tariffs, and remittance procedures as 1st October 2024 will mark the full transition from the NHIF to SHIF.
SHIF Contribution Rates
One of the most significant changes for employers under the SHIF system is the rate of contribution. Under Section 27(2)(a) of the SHI Act, all employees’ statutory contributions from wages or salaries will be deducted monthly at a rate of 2.75% of their gross salary or wage. Employers are responsible for deducting and remitting these amounts to the SHIF by the 9th day of every month.
SHIF Bank Account Details
Employers should remit SHIF contributions into one of the designated Social Health Insurance Fund (SHIF) collection accounts. Below are the account details for the various banks where SHIF contributions can be deposited:
| No. | Account Name | Bank Name | Branch | Account Number |
|---|---|---|---|---|
| 1 | Social Health Insurance Fund (SHIF) | KCB | Capital Hill | 1329035704 |
| 2 | Social Health Insurance Fund (SHIF) | SIDIAN | Kilimani | 01036020040330 |
| 3 | Social Health Insurance Fund (SHIF) | CO-OPERATIVE | Upper Hill | 0110176474001 |
| 4 | Social Health Insurance Fund (SHIF) | EQUITY | Community | 0170285746991 |
| 5 | Social Health Insurance Fund (SHIF) | ABSA | Absa Towers | 2052202135 |
| 6 | Social Health Insurance Fund (SHIF) | DTB | Capital Centre | 0298631001 |
Offenses Under the SHI Act
Employers should also be mindful of penalties under Section 48(1) of the SHI Act. Violations include:
- Failure to remit contributions: Employers who fail to remit contributions within the prescribed period face legal consequences.
- Unauthorized deductions: Any employer making unauthorized deductions from an employee’s wages or salary, or misusing deducted amounts, will be penalized.
- False statements or misrepresentations: Providing false documentation or information regarding SHIF contributions is also a punishable offense.
These offenses carry serious penalties, making it imperative for employers to comply with the regulations.
How Employers Can Ensure Compliance
To ensure compliance with the SHI Act, employers should:
- Deduct the correct amount from salaries: Ensure the 2.75% deduction is applied accurately from each employee’s gross salary.
- Meet the deadlines: Contributions must be remitted by the 9th of every month without fail.
- Choose the right SHIF account: Use one of the official SHIF bank accounts for remittance. Ensure that the account details are accurate and up to date.
- Stay informed about new updates: As the transition from NHIF to SHIF progresses, staying updated on any additional guidelines or changes is crucial.
Support and Contact Information
If employers face challenges or have questions about SHIF contributions, they can reach out to the Social Health Authority (SHA) for support:
- Email: customerservice@sha.go.ke
- Toll-free number: 0800 720 601
This support ensures that employers can clarify any issues they face, preventing any compliance mishaps.
The new Social Health Insurance system is designed to enhance the quality and accessibility of healthcare in Kenya. Employers play a pivotal role in ensuring the system’s success by diligently remitting SHIF contributions on behalf of their employees. By understanding the Act, complying with deadlines, and using the correct remittance accounts, employers can help pave the way for a smooth transition to this new healthcare framework.
Stay informed and ensure timely SHIF contributions to secure your employees’ healthcare benefits under the new system.
