Employers Face 5-Day Deadline to Remit Social Health Authority Contributions

Nairobi, Kenya — 2025-09-05 23:00 EAT. The Kenyan government has given employers five days to clear all Social Health Authority (SHA) insurance deductions or face penalties, in a move aimed at accelerating universal health coverage funding.

The Latest

SHA CEO Dr. Mercy Mwangangi announced a September 10 deadline for all pending contributions. Employers missing the cut-off face a 2% penalty on arrears and employees risk suspension of coverage until dues are settled. Status: confirmed.

Context in Brief

• SHA launch: Replaced National Hospital Insurance Fund (NHIF) in early 2025.

• Mandate: Expands affordable health insurance access under universal health coverage goals.

• Rollout: Public workers covered first; private sector and self-employed being phased in.

Law, Policy, and Process

• Legal Basis: Social Health Insurance Act, 2023.

• Compliance Mechanism: Payroll deductions from both employer and employee; remitted monthly to SHA.

• Enforcement: Penalty surcharges, coverage suspension for non-compliant contributors.

Voices and Stakeholders

• SHA CEO: “Timely payment of premiums is crucial to guarantee uninterrupted health coverage,” Dr. Mwangangi, 2025-09-05.

• Employers’ associations: Seek clarity on technical remittance procedures before deadline.

• Labor unions: Supportive but urge transparency in fund use.

Evidence & Data

• Deadline: September 10, 2025.

• Penalty: 2% on outstanding balances.

• Coverage: Over 5 million contributors in phased rollout (Ministry of Health data).

Risks and Implications

• Health Access: Workers risk service suspension if employers delay payments.

• Finance: Fund liquidity improves with stricter enforcement.

• Politics: Deadline tests government’s commitment to universal healthcare timelines.

What We Don’t Know

• Number of employers currently in arrears.

• Whether penalties will be automatically applied after deadline.

• Mechanisms for appealing surcharges or suspensions.

Timeline

• 2025-09-05: SHA issues 5-day notice.

• 2025-09-10: Compliance deadline.

• Post-2025-09-10: Penalties enforced; coverage suspensions possible.

What to Watch

• Employer compliance rates after deadline passes.

• Public reactions if healthcare access disrupted.

• SHA quarterly financial reports on fund inflows, payouts.