Govt Directs Employers to Register Employees on SHA by Oct 1
By The Misfit Tuesday, 17 September 2024
In a sweeping directive, the Kenyan government has mandated that all employers ensure their employees are registered on the new Social Health Insurance Fund (SHIF) by October 1, 2024. This order, issued by the Ministry of Health, signals a major shift as the National Health Insurance Fund (NHIF) will be phased out after September 30, 2024, with all health insurance transitioning to SHIF.
Transition to SHIF
The government’s directive underscores the urgency of updating existing systems to facilitate the smooth transfer of insurance contributions to the new SHIF platform. Employers are required to make these updates so that all employee insurance proceeds are redirected to the SHIF portal.
Registration Process
Employers will need to access the SHIF portal to create accounts for their employees. This account will be used to manage contributions based on the designated frequency. Employers will be guided through a series of verification steps provided by the Social Health Authority (SHA) to ensure accuracy.
Once accounts are set up, employers must enter employee details into the SHIF system. The portal will then handle the acceptance and processing of contributions. Employers are also responsible for managing any changes in employee details and ensuring compliance with the scheme’s regulations.
Additionally, employers will be tasked with generating and downloading contribution reports for their staff and updating information regarding their dependents.
Legal and Compliance Issues
The transition comes amid legal challenges. The High Court recently declared two sections of the Social Health Insurance Act (SHIA) unconstitutional. Sections 26(5) and 27(4) required proof of up-to-date contributions for accessing health services, raising concerns about the legality and fairness of the new requirements.
Deadline Approaches
With the deadline rapidly approaching, employers must act promptly to comply with the new registration requirements. The effective implementation of this directive will be crucial in ensuring a smooth transition and maintaining uninterrupted health coverage for all employees.
As Kenya moves towards this significant change in health insurance administration, the effectiveness of the new SHIF system and its impact on both employers and employees will be closely monitored.
