For self-employed individuals in Kenya, the process of calculating the amount payable to the Social Health Assurance (SHA) can often be confusing, especially when it comes to understanding the means testing involved. Whether you are running your own business, freelancing, or working on a contractual basis, knowing how to accurately determine the monthly or annual contributions to SHA is essential to stay compliant and ensure access to healthcare benefits.
This article provides a comprehensive, step-by-step guide on how to calculate the amount payable to SHA per month for self-employed individuals. We will break down the means-testing process, explain how to use the online portal to calculate your contributions, and offer tips on ensuring that you pay the correct amount to avoid any future discrepancies.
What is SHA (Social Health Assurance)?
The Social Health Assurance (SHA) program is a government initiative aimed at providing affordable health coverage to all Kenyans, including self-employed individuals. SHA is part of Kenya’s broader strategy to promote universal health coverage (UHC) and ensure that every Kenyan, regardless of employment status, has access to essential healthcare services.
For self-employed individuals, the process of contributing to SHA is a little different than for salaried employees. While formal employees typically have deductions automatically made from their salaries, self-employed individuals are required to calculate and pay their contributions manually based on their income levels.
Why is It Important to Pay SHA Contributions?
- Access to Healthcare: Paying into SHA ensures that self-employed individuals can access government-subsidized healthcare services across the country, including outpatient and inpatient services.
- Compliance with Government Regulations: SHA is a government-mandated scheme, and regular contributions help you stay compliant with Kenya’s health insurance regulations.
- Financial Security for Health Emergencies: SHA offers health coverage that could protect you from the high costs of healthcare in the event of a medical emergency.
Step-by-Step Guide to Calculate the Amount Payable to SHA per Month
For self-employed individuals, calculating the amount payable to SHA is based on a few factors, including income, dependents, and the category of health services you choose. Here’s a comprehensive guide on how to calculate the payment.
1. Login to the Afya Yangu Portal
The first step in calculating your SHA contributions is to visit the Afya Yangu portal. This is where you will input your personal and income details for means testing and contribution calculation.
- Go to the official portal: www.afyayangu.go.ke
- Create an account or log in using your personal credentials.
2. Complete the Means Testing Process
Means testing is a key element in determining how much you should pay to SHA. The purpose of means testing is to assess your financial capacity to contribute to the health insurance scheme.
- Click on “My Profile”: Once logged in, go to your profile section.
- Select “Income”: You will be prompted to provide details about your monthly or annual income.
- Answer the Income Questions: The system will ask a series of questions related to your income, such as your business earnings, any freelance income, or other sources of revenue.
This data will be used to determine your contribution category.
3. Review Your Income Level and Contribution Category
After you submit your income information, the system will calculate your monthly or annual payment based on your declared earnings. The amount you are required to pay will depend on the following factors:
- Income Level: Higher income brackets typically correspond to higher monthly payments. Self-employed individuals with higher earnings may be required to pay more.
- Dependents: If you have dependents (spouse, children, or other family members), they may also be covered under your SHA contributions, which can affect the final amount you pay.
- Health Plan Selection: The health services you choose to access will impact your contribution. There may be different plans based on the level of healthcare services provided.
4. Finalize Your Payment
Once the amount payable has been calculated, you will be able to review the payment details and proceed with the transaction. Payments can typically be made through mobile money platforms, bank transfers, or direct deposits.
- Monthly vs. Annual Payments: You can opt to pay either monthly or annually, depending on what suits your financial situation.
5. Keep Track of Your Contributions
It’s essential to regularly track your SHA contributions to ensure you are up-to-date with your payments. This is especially important for self-employed individuals who may have irregular income streams. The Afya Yangu portal allows you to view and download your payment history, which is useful for record-keeping and compliance.
Factors That Influence the SHA Payment for Self-Employed Individuals
Several factors influence how much a self-employed individual will pay into SHA. These include:
1. Income Declaration
Your income is the most critical factor in determining how much you will pay. The more income you declare, the higher your contribution to SHA will likely be. This is because SHA aims to match contributions with an individual’s financial capability, ensuring the system remains equitable.
2. Dependents
If you have dependents, you may need to pay for their coverage as well. Dependents include your spouse, children, and possibly other family members who rely on your income. The portal allows you to declare these dependents, and they will be added to your healthcare coverage plan.
3. Health Plan Option
SHA offers different levels of health coverage, from basic to premium plans. The more comprehensive the plan, the higher your contribution. These plans typically cover everything from outpatient services to hospitalization, surgery, and emergency care.
4. Payment Frequency
You can choose to pay on a monthly or annual basis. Paying annually may be more cost-effective, as some providers offer discounts for upfront payments.
Common Mistakes to Avoid When Calculating SHA Contributions
Here are a few mistakes self-employed individuals should avoid during the means testing and payment process:
- Underreporting Income: Some self-employed individuals may attempt to underreport their income in order to pay lower contributions. However, this can lead to penalties or loss of healthcare coverage.
- Failure to Include Dependents: Omitting dependents can lead to discrepancies in your contributions. Make sure you include all family members who are covered under your plan.
- Missing Payments: Consistent and timely payments are crucial to maintain your coverage. Missing payments can result in lapses in healthcare access, so make sure you stay on top of your monthly or annual contributions.
- Incorrect Information: Ensure that all the information you provide on the Afya Yangu portal is accurate. Incorrect data could result in an incorrect payment amount, affecting your coverage.
Why Means Testing Matters for Self-Employed Individuals
Means testing is a key component of the SHA program because it ensures that contributions are fair and equitable. By tailoring contributions to an individual’s income, the government ensures that everyone can access healthcare, regardless of their financial situation. Here are a few reasons why means testing is particularly important for self-employed individuals:
- Ensures Fair Contribution: Self-employed individuals often have irregular income, so means testing allows for a more accurate reflection of their financial ability to contribute.
- Prevents Overburdening Low-Income Earners: Means testing prevents individuals with lower earnings from being overburdened by excessive contribution amounts, helping to make healthcare accessible to all.
- Helps with Long-Term Financial Sustainability: By calculating payments based on actual income, SHA ensures that it remains financially sustainable while providing coverage to as many people as possible.
Stay on Top of Your SHA Contributions
Calculating the amount payable to SHA as a self-employed individual may seem daunting, but with the right tools and understanding, it can be a simple process. By logging into the Afya Yangu portal and completing the means testing, you can determine the amount you need to contribute each month or annually.
Regularly track your contributions and ensure that all the information is accurate to avoid any potential issues. Staying compliant with SHA not only ensures that you have access to crucial healthcare services but also supports Kenya’s goal of achieving universal health coverage for all its citizens.
Don’t delay in calculating your SHA contributions! Log in to the Afya Yangu portal today, complete the means testing, and secure your access to affordable healthcare. If you have any questions or need help navigating the portal, visit www.afyayangu.go.ke or contact your local SHA representative for assistance.
