NHIF to the SHA : If you earn Sh 100,000 your Contribution Increases by Ksh 1,050 monthly
The Kenyan Government, through the Ministry Of Health, recently rolled out a new health Scheme, Social Health Authority (SHA) under which Social Health Insurance Fund (SHIF) is incorporated.
The New Health Scheme, replaces the National Health Insurance Fund, NHIF which has been embroidered in several Multi-Million Misappropriation exposes over the years.
This Article will delve into the Contribution's Salaried and Non-Salaried Kenyans will be required to Contribute towards SHIF Monthly and Annually.
Non-Salaried Kenyans.
A household whose income is not derived from salaried employment shall pay an annual contribution to the Social Health Insurance Fund at a rate of 2.75% of the proportion of household income.
SHA, in collaboration with the Ministry of cooperatives and micro, small and medium enterprises development and other financing institutions, shall provide premium financing to non-salaried persons to enable them to pay their annual contributions within the intervals under which their income becomes available.
According to the Ministry of Health, Data will be collected on non-salaried households to determine and estimate the household’s ability to pay SHIF contributions.
The amount payable every month, shall not, in any case, be less than Kenya shillings three hundred, Ksh 300.
Pay Slips Deductions.
Salaried Kenyans shall pay a monthly statutory deduction contribution to the Social Health Insurance Fund at a rate of 2.75% of the gross salary or wage of the household.
An employer shall deduct the same contribution of a salaried contributor and submit the contribution to the Authority on behalf of the employee at the rate provided by the ninth day of each month.
For example, a person earning Ksh. 20,000 per month will now pay Ksh 550 monthly and Ksh. 6,600 annually.
At the same time someone earning Ksh. 100,000 per month, the contribution rises from the previous Ksh. 1,700 to Ksh. 2,750 monthly.
There is no cap on contributions under SHA; for instance, a person earning Ksh. 500,000 monthly will pay Ksh.13,750 each month, totaling Ksh.165,000 annually.
Any person who fails to pay any contribution in respect of any period on or before the day on which payment is due shall be liable to a penalty equal to two percent (2%) of the amount due.
To ensure compliance with the deductions, SHIFT Act makes it mandatory for all adult Kenyans to contribute, failure to which they will be denied government services.
Section 26(5) mandates SHIF registration empowering national and county governments to withhold services from those without membership, as part of financing universal health coverage (UHC).
You will be required to show proof of compliance to access government services.
“A person who is registrable as a member under this Act shall produce proof of compliance with the provisions of this Act on registration and contribution as a precondition of dealing with or accessing public services from the national and county governments," the law states in part.
Similarly all non-Kenyans residing in Kenya for a period exceeding 12 months are required to register mandatorily for SHIF under the Act. If one is staying in Kenya for less than 12 months, however, they need not register for SHIF but have travel health insurance coverage.