News FlashesApril 19, 2024

News Flash 11 April 2024 – KENYA – SHIF Implementation July 2024

It is important that employers note the following:

Social Health Insurance Fund implementation
Following the halting of the implementation of the SHIF in November 2023, the Court of Appeal lifted the order on 19 January 2024, allowing the government to move forward with implementing the Universal Health Coverage (UHC) rules.

The implementation of the Social Health Insurance Act 2023 (the Act) was dependent on the gazetting of the SHIF regulations. Until then, employers were advised to continue to withhold and remit contributions in accordance with the prior National Health Insurance Fund (NHIF) regulations.

The Social Health Insurance Regulations, 2024 were assented to on 21 March 2024. The payment of contributions and access to healthcare services under the Act and the Regulations will commence on 1 July 2024 .

Every Kenyan resident must apply to the Social Health Insurance Authority (SHIA) to be registered as a member. The deadline for completing registration is 30 June 2024.

To be eligible for benefits under the new Universal Health Coverage (UHC) programme, Kenyans who are already enrolled in the National Health Insurance Fund (NHIF) must re-register.

Note that the data of the NHIF under the repealed Act will be retained until all claims have been settled.

In terms of the SHIA regulations, every Kenyan household, non-Kenyan resident ordinarily residing in Kenya for a period exceeding 12 months, the national government and county governments are required to contribute to the SHIF at the following rates:
• Households whose income is received from salaried employment will be required to pay a monthly contribution at a rate of 2.75% of the gross income of the household.
• Households whose income is not received from salaried income will have to pay an annual contribution at a rate of 2.75% of the proportion of household income, determined through the means of testing by the SHIA.
• In both cases, the minimum amount payable will be KES 300.

The application form for individual registration (Form 1) is included in the First Schedule of the Regulations.

Employer obligations
An employer must deduct the contribution of a salaried contributor and submit the contribution to the authority on the employee’s behalf at the prescribed rate by the 9th day of each month.

Additionally, an employer must inform the authority of any changes in the employment status of its employees.

In the event of employment termination, the employer must notify the authority within 30 days of the termination and remit the employee’s final contribution.

The employer will be required to register with the authority as stipulated in the Regulations and must submit the following documents:
• A copy of the certificate of registration or incorporation from the relevant authorised body; and
• A copy of the PIN certificate of the employer issued by the Kenya Revenue Authority.

The application form for employer registration (Form 5) is included in the First Schedule of the Regulations.

To view the Social Health Insurance Regulations, 2024, follow the link.

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