What’s actually changed (and what’s been true all along)
The 2% late-payment penalty isn’t new. It’s written into the Social Health Insurance Act, 2023. If you miss the due date, you’re liable to a penalty equal to two percent of the amount due for the period in which the contribution remains unpaid.
The operational due date (for salaried payrolls) is the 9th day of the following month under the Social Health Insurance (General) Regulations, 2024. Miss that date and the penalty kicks in.
How the 2% penalty applies in practice
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Rate & cadence: 2% of the unpaid amount for each period it remains unpaid (effectively monthly until cleared).
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“Debited to next month payments”: SHA’s recent compliance push says the 2% will be automatically applied once the deadline lapses, and it shows up against your next cycle unless you settle immediately.
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Coverage impact: Non-compliance risks employees being barred from accessing services until arrears plus penalties are cleared.
The hard deadline you need to respect
Pay by the 9th of every month for the previous payroll month. That’s the cut-off SHA is enforcing.
The enforcement heat right now
SHA has been reiterating the deadline and warning of automatic penalties after the cut-off. Beyond the 2% monthly penalty, the Act also allows fines up to KES 2 million or 3 years’ imprisonment for certain employer offences, like failure to remit without lawful excuse.
Clean compliance checklist (do this now)
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Reconcile payroll against SHA remittances. If anything’s missing, pay before the 9th.
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Build a monthly cut-off ritual: close payroll, verify SHA base, and authorize payment no later than the 7th.
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Automate remittance: generate the file from your payroll system and set a standing payment.
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If you missed the deadline: pay the principal and expect the 2% penalty to be tacked onto your next cycle. Clear arrears fast to stop further accrual.
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Document everything: keep receipts and SHA portal confirmations for audits or disputes.
FAQs employers are asking
Is the 2% “compounded” monthly?
The law states 2% “for the period in which the contribution remains unpaid.” Whether compounded or not, the cost stacks each month you’re late.
What exactly is due by the 9th?
For salaried employees, remit 2.75% of gross (employee contribution) to SHA by the 9th of the following month.
Can employees lose access to care if we’re late?
Yes—until you clear arrears and penalties, coverage can be suspended. Don’t put your people at risk.
Final word
Employers can no longer afford to ignore SHA’s deadlines. A “small” delay quickly becomes a compliance and employee-relations nightmare. Automate, pay early, and avoid unnecessary costs.
Social Health Authority (SHA) Contact Info
According to SHA’s Terms and Conditions (updated June 1, 2024), here's how you can reach their customer care team:
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Phone Numbers: 020 2723255/6, 2723246, 271 4793/94, 2722527
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Email: info@sha.go.ke sha.go.ke+1
Need help setting up compliant, automated payroll and remittance? FaidiHR is here to keep you penalty-free and stress-free.
Sales: +254 702 339 699
Email: sales@faidihr.com