SHA lists 6 banks for remission of deductions and issues warning to employers
By Arnold Ngure, October 14, 2024The Acting Social Health Authority (SHA) CEO Elijah Wachira has listed six bank accounts in which the deduction from salaried employees’ remittances should be channelled.
In the notice on Monday, October 14, 2024, Wachira listed the following banks where employers are expected to remit deductions from their employees by the 9th of every month.
KCB Bank Capitol Hill Branch – Account number- 1329035704
Sidian Bank Kilimani Branch – Account number – 01036020040330
Cooperative Bank Upper Hill Branch – Account number- 01101176474001
Equity Bank Community Branch- Account number- 0170285746991
Absa Bank Absa Towers Branch – Account number – 2052202135
Diamond Trust Bank Capital Centre Branch- Account number- 0298631001
The account names in all the six bank accounts will be Social Health Insurance Fund (SHIF).
Regulation 17(1) of the Social Health Insurance general regulations further provides that a household whose income is derived from salaried employment shall pay a monthly contribution to the Social Health Insurance Fund at the rate of 2.75% of the gross salary or wage, to be remitted by the ninth (9) day of every month.
Punishment for non-compliance
Wachira drew the attention of the employers to a clause in the Social Health Insurance Act which spells out punishment to individuals who fail to timely make deductions and remit them by the ninth date of each month.
“Kindly note that Section 48(1) of the SHI Act provides for offences for any person or a contributing employer who:- a) fails without lawful excuse to pay to the Social Health Insurance Fund within the period prescribed by the Act, any contribution which he or she is liable to pay, b) knowingly makes any deduction from the wages of the employee other than a deduction which he or she is authorized to make for the purpose of the SHI Act or c) knowingly makes any false statement representation, furnishes, or causes to be produced or furnished, any document or information which he or she knows to be false,” Wachira indicated in the statement.
The health insurance was rolled out on October 1, 2024, effectively putting a stop to the National Hospital Fund (NHIF) which was previously the insurance body for public health.
12 million SHA registrations
The Ministry of Health revealed that more than 12 million Kenyans had been registered with the SHA and that more people continue to be enlisted in the service.
Cabinet Secretary for Health Deborah Barasa, however, was unclear how those in the informal sector are expected to remit their payments.
She stated that a scientific method will be introduced to calculate their deductions based on several parameters.