Highlights of the Social Health Insurance Fund

In its efforts to achieve Universal Health Coverage, the government in 2023 came up with various health laws. Among them was the Social Health Insurance (SHI) Act 2023 which established Social Health Authority (SHA).

Latest 1^st October 2024, every Kenyan citizen, their dependents and corporates are required by law to register with SHA and adhere to payment deadlines.

Households whose income is derived from salaried employment shall pay a statutory deduction at the rate of 2.75 per centum of the gross salary or wage of that household every month, as stipulated under section 17 (1) of the SHI Regulations. The gross salary for purposes of SHA should include the basic salary and any other regular allowances (paid monthly) paid to an employee.

Households whose income is not derived from salaried employment shall make an annul contribution at the rate of 2.75 per centum of the proportion of household income determined by means of testing instrument, to the Social Health Insurance Fund.

The amount payable every month shall not go below Ksh 300 and contributions are to be remitted to SHIF by the 9^th day of the succeeding month. For non-salaried beneficiaries, the amount payable shall be remitted 14 days before the lapse of the annual contribution of the beneficiary.

Means of testing

The authority shall collect household data based on the following socio-economic aspects;

• Housing characteristics,
• Access to basic services,
• Household composition and characteristics, and
• Any other relevant socio-economic aspect.

Is there tax relief on SHA contributions?

Whether or not tax relief applies to SHA contribution has been a thorny issue for many employers. While many would believe the same principles that were applied for the defunct NHIF contributions, there has been no clear position on whether this amount should be subjected to relief. However, as part of the effort to streamline the operationalization of SHA, the authority has clarified that the contributions qualify for relief. This is, however, subject to KRA’s advice on the same.

Key Dates and Information.

1. Last NHIF Admission: The last date for admission under NHIF is 1^st October 2024 and SHA benefits will begin on 2^nd October 2024.
2. Payment Deadlines:
   • Payments received on or before 9^th October 2024 will be credited to NHIF.
   • Payments received from 9^th November 2024 onwards will be credited to SHA.

Registration

Registration is available online at www.sha.go.ke or www. afyangua.go.ke or via USSD *147#.