Why Employers Risk Ksh2 Million Fine Over SHA Contribution

The Social Health Authority (SHA) has issued a stern warning to all employers in Kenya on SHA monthly contribution.

According to a statement from SHA, failure to register and remit monthly contributions under the Social Health Insurance Act of 2023 could result in fines of up to KSh2 million or three years in prison.

“This is a reminder that not paying contributions to the Social Health Insurance Fund without a valid reason is an offence,” the SHA said in a statement.

All employers including those in the national and county governments as well as private businesses are required to register with SHA, enroll employees and their dependents, and remit monthly payments on or before the 9th day of each month.

The Law on SHA

According to Section 27(6) of the SHI Act states that any person who fails to pay any contribution shall be liable to a penalty equal to two per cent of the amount due for the period which the contribution remains unpaid.

SHA further emphasized that non-compliance could lead to financial penalties and loss of health coverage for employees.

To comply, employers must register through the SHA Employer Portal at, ensure employee data is updated, and make timely payments.

Also Read: Govt Proposes New System for Deducting SHA Contributions

For help with registration or remittance, employers can call 147, visit www.sha.go.ke, or email [email protected].

“Thank you for supporting Universal Health Coverage for all Kenyans,” the statement concluded.

Direct Monthly Deduction Method

Health Cabinet Secretary (CS) Aden Duale had earlier suggested a new approach for collecting Social Health Authority (SHA) contributions from civil servants.

While addressing attendees at the Kenya Medical Practitioners, Pharmacists and Dentists Union (KMPDU) Annual Delegates Conference (ADC) on Saturday, May 9, 2025, held at the PrideInn Paradise Beach Hotel & Convention Centre in Mombasa, Duale recommended that the deductions be made directly by the National Treasury.

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“I will take this proposal to the Council of Governors — that SHA contributions, not only for healthcare workers but for all civil servants at both the national and county levels, be deducted at source,” said Duale.

On October 1, 2024, the Ministry of Health officially launched the Social Health Authority (SHA) to replace the National Health Insurance Fund (NHIF).

The new entity aimed to achieve universal health coverage by providing affordable, accessible, and quality healthcare services to all Kenyans.

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