The Social Health Authority (SHA) has issued a clarification urging employers to consult the Kenya Revenue Authority (KRA) regarding tax relief for contributors under the Social Health Insurance Act (SHI) 2023. This follows concerns over statutory deductions from employee salaries mandated by the act and the 2024 regulations.
In a statement, SHA confirmed that the SHI regulations, formalized on March 8, 2024, through Legal Notice No. 49, require salaried employees to make monthly contributions to the Social Health Insurance Fund (SHIF). The contribution rate is set at 2.75% of the gross salary, which includes allowances and other forms of compensation, with payments due by the ninth day of each month.
SHA clarified that employees contributing to SHIF should be eligible for insurance relief but advised employers to engage with KRA to ensure they follow proper procedures in administering this relief.
Additionally, the SHA emphasized that employers are not required to match their employees’ contributions under the SHI Act, alleviating concerns about potential extra financial obligations.
This clarification comes as part of the government’s ongoing efforts to roll out policies aimed at achieving universal health coverage across Kenya. Employers are encouraged to comply with the new guidelines to avoid any penalties or legal complications.