The Social Health Authority (SHA) is Kenya’s newly established public health insurance administrator. Formed under the Social Health Authority Act, 2023, it assumed operations from the National Hospital Insurance Fund (NHIF) on October 1, 2024, managing three critical funds aimed to drive Universal Health Coverage (UHC).
1. Why SHA contributions are crucial
SHA’s mandate is to provide accessible, affordable, sustainable, and high?quality health insurance for all Kenyan citizens and eligible foreign residents. Contributions fuel these goals by:
-
Pooling risk across citizens, including informal sector workers
-
Enabling progressive, income?based premiums
-
Covering preventive, outpatient, inpatient, emergency, and chronic illness services
2. Three Funds under SHA
SHA handles three distinct but complementary insurance funds:
-
Primary Healthcare Fund
– Government-funded for primary and preventive care (levels 2–3), available to all SHA-registered individuals at no direct cost. -
Social Health Insurance Fund (SHIF)
– Funded via 2.75% gross-income contributions, with no maximum cap and a minimum of KES?300 per month.
– Covers level 4–6 services, including inpatient, outpatient, and specialized care. -
Emergency, Chronic & Critical Illness Fund
– Activated when SHIF benefits are depleted. Covers emergencies, severe, and chronic conditions.
3. Contribution rates and approach
-
Formal sector (salaried):
• Deducted by employers at 2.75% of gross salary, minimum KES?300 monthly
• Remitted by employers to SHA by the 9th of the following month -
Informal sector (self-employed, non-salaried):
• Covered annually through means-testing
• Minimum contribution remains KES?300 monthly, with government subsidies for low-income earners
4. Transition from NHIF to SHA
-
NHIF ceased operations on September 30, 2024, and SHA took over on October 1, 2024.
-
Assets, liabilities, staff, contracts, and contributions were seamlessly transitioned to SHA.
-
Employers and members were urged to re-register to maintain uninterrupted coverage.
5. Payment channels and compliance
For Employers:
-
Register via the SHA Employer Portal
-
Upload KRA PIN, CR12/BR1, list of employees, and submit contributions by the 9th
For Self?Employed:
-
Register via USSD, the SHA portal, or Huduma Centres
-
Payment via M?Pesa Paybill: 200222, SHA USSD (*147#), or authorized banks
6. Penalties for non?compliance
-
2% penalty on late contributions
-
Employers face fines of up to KES?2 million or up to 3 years in prison for non-remittance
-
Fraudulent claims or false registration lead to severe legal action
7. Benefits of SHA contributions
-
Inclusive coverage: Supports the vulnerable, informal, and formal sectors
-
Fair payment model: Income-based, replacing the NHIF’s flat rate
-
Comprehensive protection: From outpatient to chronic and emergency care
-
Transparent structure: Better accountability and budgeting
Get in touch with FaidiHR today
Sales: +254 702 339 699
Email: sales@faidihr.com
Let us simplify your SHA compliance and payroll operations.