Below are the SHIF Conrtibution Rates starting from Year 2024:
Social Health Insurance Fund (SHIF) Rates as from 2024:
| Salary | Contribution Rate |
|---|---|
| KSh 0 – 10,909 | KSh 300 |
| Above KSh 10,909 | 2.75% |
Guidelines
The Ministry of Health has announced that, starting 1 October 2024, employers must transition to the new Social Health Insurance Fund (SHIF), providing clear guidance on the process.
The SHIF was introduced through the Social Health Insurance Act, the Primary Health Care Act, and the Digital Health Act, which came into effect on 22 November 2023. Following this, the Social Health Insurance Regulations were published on 8 March 2024 to operationalize the Primary Healthcare Fund, SHIF, and the Emergency, Chronic, and Critical Illness Fund. These regulations required all residents of Kenya to register with the Social Health Authority (SHA) by 30 June 2024, with employers expected to start making contributions from 1 July 2024.
However, implementation was delayed after the High Court deemed the Acts unconstitutional. Despite this, the Court of Appeal issued a stay, allowing the Acts to remain in effect while the appeal is pending. As a result, the new effective date for employers to comply is 1 October 2024.
What Employers Need to Know
The Court of Appeal's ruling on 20 September 2024 upheld the validity of the three Acts of Parliament. Consequently, employers are now required to register their employees with the SHA and begin contributing to the SHIF starting 1 October 2024. The recent notice from the Ministry of Health also shifted the registration responsibility from employees to their employers.
SHIF Contributions
The SHIF contribution rates are as follows:
- For salaried employees, 2.75% of their gross salary will be deducted monthly, with a minimum contribution of KES 300 and no upper limit. Employers must submit these payments by the 9th of the following month.
- For non-salaried households, the contribution is 2.75% of household income, with a minimum of KES 300 per month, paid annually.
Penalties for Non-Compliance
Employers who fail to remit SHIF contributions on time will face a 2% penalty on the unpaid amounts. Additionally, failing to contribute or making unauthorized deductions from employees could result in fines up to KES 2 million, imprisonment for up to three years, or both.
How to Register for SHIF in Kenya: A 2024 Step-by-Step Guide
SHIF is a public health insurance scheme launched by the Kenyan government in March 2024, replacing the National Hospital Insurance Fund (NHIF). It was created to give all Kenyans better access to affordable, high-quality healthcare services. Find out more on how to register for SHIF here.
Download The Current SHIF Payroll Template
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