SHA WARNS EMPLOYERS OF PENALTIES FOR DELAYED SHIF PAYMENTS

The Social Health Authority (SHA) has issued a stern warning to employers over late remittance of Social Health Insurance Fund (SHIF) contributions, cautioning that defaulters will face hefty penalties and possible legal action.
In a notice released on Friday September 5, 2025, SHA reminded employers that monthly contributions must be submitted by the 9th of every month without fail. Any delay, the authority said, will attract a 2 percent penalty on the outstanding amount, compounded monthly until full payment is made.
The authority stressed that timely remittance is a legal obligation under the Social Health Insurance Act 2023, which empowers regulators to impose fines of up to KSh2 million or three years imprisonment for persistent non-compliance.
Failure to remit on time may also result in employees being locked out of healthcare services, since their accounts are automatically flagged for default.
SHA disclosed that more than 44,000 firms are under scrutiny for delayed or missing contributions, with audits and enforcement measures already underway.
“Employers must take their responsibility seriously to protect their staff from disruptions in healthcare access,” the authority said in the statement.