What you need to know about SHA in Kenya.

Social Health Authority (SHA) was established under the Social Health Insurance Act 2023 as a strategy
for the realization of universal health coverage in Kenya. Then launched on 1st October 2024 to replace the National Health Insurance Fund (NHIF), which did not favor many Kenyans who are jobless or in the informal sector. SHA aims to provide comprehensive medical services to all Kenyan citizens, irrespective of their income status . Consequently, low-income individuals will access quality medical services from the empaneled and contracted healthcare facilities without additional out-of-pocket expenses.

Membership

To enjoy SHA’s benefits, every Kenyan must register by October 1, 2024. Moreover, a non-Kenya who ordinarily resides in Kenya for a period that exceeds 12 months is eligible to register with SHA. Also, the social health insurer will register all kids born after its launch at birth. SHA automatically migrated individuals with existing NHIF accounts. However, in case there are changes you need to make to your profile, you can dial *147#, visit sha.go.ke, or any authorized SHA agent. The registration is for both individuals and employers.

Registration of individuals

An individual can register with the authority through:

1. USSD *147#
2. sha.go.ke the and click the tab to register as an individual and follow the instructions given.

Registration of employers.

According to the public notice to employers issued by the Ministry of Health on 1^ST of October 2024, they are required to register and make monthly contributions for their employees. Hence, you should register online through sha.go.ke.

Steps to register as an employer with NHIF number

1. Go to sha.go.ke.
2. Click “Register as an Employer” tab
3. Select “activate with NHIF E-services “as the registration type
4. Insert the company NHIF number and password to continue
5. Fill in the required details and Submit
6. The system will send an activation link to the email you provided in step 3.
7. Click the link to access your employer portal log-in page, then insert your email and password to log in.

Functions of the employer portal.

1. Registration of employees and their dependents
2. Updating employee information
3. Remitting employee’s contributions on their behalf and generating contribution statements
4. Generating contribution statements

Benefits of SHA

The benefits under the Social Health Authority include preventive, promotive, curative, rehabilitative, and palliative health services. These are provided at level 4, 5, and 6 health facilities contracted or empaneled by the fund​​.

SHA Contributions.

As outlined by the SHIF Act 2023 section 27, the following persons are liable to make contributions to the fund.

1. Kenyan households
2. A non-Kenyan resident ordinarily residing in Kenya for a period exceeding 12 months.
3. National Government
4. County Government
5. Any other employer.

Contributors must pay a minimum of Ksh 300, with no maximum limit for contributions to the fund. This reduces the minimum contribution from Ksh 500 previously paid to NHIF.

Contributions by self-employed individuals

SHIF regulations 2024, regulation 17, requires households without salaried income to pay an annual contribution to the Social Health Insurance Fund at 2.75% of household income, as determined by the means testing instrument under regulation 21. Households must pay the amount 14 days before their annual contribution period ends.

The data to be collected to determine the household’s income for the purpose of determining the amount to pay as contribution to the fund will be based on social economic aspects which include.

1. housing characteristics
2. access to basic services
3. household composition and characteristics
4. any other socio-economic aspects as may be relevant.

Contributions made by employed individuals

Contributions of employees will be made by the employer at the rate of 2.75% of the employee’s gross salary. Employees whose contribution will be less than 300 if the rate is applied to their salary will pay Ksh 300, which is the minimum contribution to the fund. Employees earning higher salaries will part with more money than employees with low salaries. The contributions should be made by the 9^th day of the following month, starting in October 2024.

How does Gathia Mwangi& Associates help you comply with SHA as an employer?

We ensure that you file and remit your employees’ contributions in good time to avoid penalties and inconveniences in the health coverage of your employees by providing an updated payroll template through our subsidiary company, Anziano Consultants. The payroll template auto-calculates the SHA contributions for each employee based on their salary. Our automated payroll ensures no room for error in calculating the contributions, thus saving you from unnecessary costs due to miscalculations. Additionally, you can purchase our payroll from here.

Conclusion.

SHA aims to bridge the gap between the rich and the poor by making quality healthcare services affordable and accessible to all Kenyans. Thus favoring the low-income individuals who normally have limited access to good health services. Under SHA, the government will support households that are in need of financial assistance by being a contributor through the Ministry of Social Protection in the case of national government while county executive committee members will be liable as contributors in the case of a county government.  

Transitioning to the Social Health Authority also means increased compliance for businesses to avoid penalties. For this reason, Gathia Mwangi & Associates helps businesses stay compliant with emerging payroll laws and regulations by providing advisory and payroll outsourcing services. Get in touch with us for more information.