SHA Warns Informal Workers of 2 Percent Penalty on Late Contributions

The Social Health Authority has warned Kenyans working in the informal sector that delayed contribution payments will attract financial penalties.

Anyone who fails to pay contributions on time will be charged a penalty equivalent to two per cent of the outstanding amount for as long as the balance remains unpaid.

“Important Notice: Late payment attracts a penalty. Under Section 27(6) of the Social Health Insurance Act, 2023, late payment of contributions attracts a 2% penalty on the outstanding amount for the period it remains unpaid,” the notice stated.

Members with unpaid contributions and accrued penalties will not regain access to healthcare services until all outstanding amounts are fully settled.

The notice targets non-salaried households, including farmers, traders, boda boda riders, casual labourers, domestic workers and self-employed Kenyans. These groups are required to register with SHA under the Social Health Insurance Act and its regulations.

Members can pay their annual contributions in full or through the Lipa Pole Pole instalment option after completing registration and means testing.

SHA urged members to keep up with their payment schedules to avoid accumulating penalties and interruptions to their medical cover.

Under the instalment arrangement, healthcare cover is activated once a member has paid an amount equivalent to four months of the assessed annual contribution.

Registration can be completed through the *147# USSD code, online platforms, branches and Huduma Centres.

After registering, members create an account using their national ID and a mobile phone number registered in their name before setting a confidential PIN.

They must then verify personal details, register eligible dependents and complete a means test by providing information about their household, income and assets.

SHA assesses and communicates the member’s monthly or annual contribution based on the information provided.

The authority reiterated the need for timely payments to maintain continuous cover. Outstanding balances and penalties must be cleared before services resume.

The warning applies specifically to the Lipa Pole Pole payment option used by many informal sector workers.

SHA continues to process registrations and means tests across its available channels. Members are expected to adhere to the schedules once contributions are assessed.