The Social Health Insurance Act (SHIA), No. 16 of 2023, recently approved for implementation by the Court of Appeal, sets the framework for managing social health insurance in Kenya. The Act aims to establish the Social Health Authority and give effect to Article 43(1)(a) of the Constitution of Kenya, 2010.
Registration
The Social Health Insurance (General) Regulations, 2024, officially gazetted on 8 March 2024, have effectively operationalized the Social Health Insurance Act, No. 16 of 2023. Under these regulations, it is mandatory for every Kenyan household, non-Kenyan resident, National Government, County Government, and Employer to register with the Social Health Insurance Authority (SHIA) as members of the Social Health Insurance Fund (SHIF) not later than 30 June, 2024. Payment of contributions into the scheme will commence on 1 July 2024.
Contributions
Households whose income is derived from salaried employment are required to 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 by the ninth day of each month. Similarly, households 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 as determined by the means testing instrument. The minimum monthly contribution is set at three hundred Kenya shillings (KShs. 300).
Deduction and Remittance
Employers are responsible for deducting and remitting their employees’ contributions to SHIA by the ninth (9th) day of the subsequent month.
Conclusion
The Social Health Insurance Regulations, 2024, have been put in place to facilitate mandatory registration of every person resident in Kenya and to ensure access to the highest attainable standards of health. These regulations operationalize the mode of payment of contributions as provided under SHIA and establish the following funds: The Social Health Insurance Fund, The Primary Health Fund, and Emergency, Chronic, and Critical Illness Fund.
Please note that this is a general commentary and it is intended to provide general information and should not be taken as legal advice. For specific legal concerns or situations, clients should consult with a lawyer from B M Musau & Company, Advocates LLP directly.
I am a Kenyan Advocate and the Managing Partner of B M Musau & Co., Advocates, a position I have held since 1999. My work encompasses regulatory reforms, reduction of administrative burdens, the structure of business entities, joint ventures, acquisitions, banking, foreign investment and other general corporate areas
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