As the new Social Health Authority (SHA) fund enters its second week of rollout, employers in Kenya are being urged to ensure that they register their employees under the new system. The Ministry of Health has provided updates to help clarify several issues that have arisen since the launch, emphasizing the responsibility employers have in ensuring that their workers are covered. Failure to comply may result in employees being unable to access necessary medical services, even if they have self-registered under the system.
On October 8, Principal Secretary for the State Department for Medical Services, Harry Kimtai, warned employers against neglecting to declare their employees under the SHA. He highlighted that, while some workers have already taken steps to self-register, these individuals would not be able to access healthcare benefits unless their employers formally declare them through the necessary channels.
“We urge Human Resource Practitioners to declare their employees on the employers’ portal to guarantee their eligibility to benefit under the Social Health Authority. Employees who are not declared cannot access services even if they have self-registered,” Kimtai emphasized in his statement.
This message is intended to resolve confusion that has surrounded the implementation of SHA, especially among workers who have already registered but are finding it difficult to access services due to delays on the part of their employers.
The Ministry of Health has confirmed that approximately 12.7 million Kenyans are now registered under the Social Health Authority. In addition, 1,442 healthcare providers have been contracted to provide medical services under this new system. While the number of registered citizens is significant, the Ministry has stressed that it is critical for employers to take the necessary steps to ensure that their employees are officially declared.
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Legal Framework and Obligations for Employers
The SHA rollout is part of a larger healthcare reform effort in Kenya that also includes the Primary Health Care Act and the Digital Health Act. These laws were upheld by the Court of Appeal, marking a significant step in transforming the country’s healthcare system.
As of October 1, employers are legally obligated to register their employees under the SHA and make contributions to the Social Health Insurance Fund (SHIF). This transition has shifted the responsibility of registration from individual employees to their employers. According to the Ministry of Health, the SHA aims to ensure that all Kenyans have access to affordable healthcare, making employer compliance a key element of the system’s success.
Employer Responsibilities: How to Declare Employees
The process for employers to declare their employees under the SHA system has been clearly outlined by the Ministry of Health. Employers must use the National Hospital Insurance Fund (NHIF) byproduct portal to facilitate registration. Below are the detailed steps for employers to follow:
- Login to the NHIF Portal:
- Employers need to enter their NHIF byproduct portal username and password to access the system.
- Upload Business Details:
- Once logged in, the system will automatically retrieve the employer’s NHIF details. The next step requires the employer to upload their business registration certificate and Kenya Revenue Authority (KRA) PIN certificate.
- Provide Contact Information:
- The employer must then provide the details of the contact person responsible for managing the registration process. After this information is saved, the system will send an email to the contact person, allowing them to set a new password for future access.
- Upload Employee Information:
- After successfully logging in, the employer is required to upload a byproduct file containing the details of all employees.
- Generate Employee Reference Numbers:
- If an employee is already registered in the system, their Citizen Reference (CR) number will be returned. Employers can use this information to generate a byproduct reference number, which will allow them to proceed with payment.
Employee Contributions to the SHA Fund
For salaried employees, contributions to the SHA fund are calculated at 2.75% of the employee’s gross salary. This percentage is fixed, but there is a minimum contribution of Ksh 300. It’s important to note that there is no maximum limit on contributions, meaning that higher-income earners will contribute proportionately more based on their gross salary.
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Challenges in the SHA Rollout
Although the SHA system represents a significant step forward in Kenya’s healthcare reform efforts, its introduction has not been without challenges. Some employers have faced technical difficulties while navigating the NHIF byproduct portal, while others have expressed confusion about the required documentation.
There have also been reports of employees registering for SHA independently, only to find that they are unable to access healthcare services due to their employer’s failure to complete the registration process. The Ministry of Health has responded by reiterating that, while self-registration is important, employees can only benefit from SHA if their employers have officially declared them through the appropriate channels.
Ministry of Health’s Response to Public Concerns
To address these challenges, the Ministry of Health has stepped up its efforts to provide clear guidelines to employers and the general public. Public notices have been issued through various media outlets, and the Ministry is actively engaging with human resource practitioners to ensure that the process is well understood and smoothly implemented.
The Ministry’s goal is to have every Kenyan registered under SHA and able to access healthcare services without unnecessary delays or complications. To achieve this, employers must play their part by completing the required registration and ensuring that their employees are properly declared.
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