Govt To Raid Offices In Crackdown On All Employers

The Ministry of Health has launched a crackdown targeting employers who have failed to remit their employees’ Social Health Insurance Fund (SHIF) contributions.

In a statement released on Monday, June 23, Medical Services Principal Secretary Ouma Oluga announced that the ministry has deployed Registration and Compliance Officers (RCOs) to carry out door-to-door inspections aimed at assessing compliance with remittance requirements.

The inspections will begin in Nairobi and later extend to Kiambu and Kajiado counties, with plans to roll out the initiative nationwide over the next six months.

Oluga emphasized that all employers are legally required to submit SHIF deductions by the 9th of each month. The ministry is seeking to recover Ksh 21 billion in unpaid contributions from defaulting employers across the country.

Health PS Ouma Oluga addressing the media on June 23, 2024. /MINISTRY OF HEALTH

“The SHA RRI targets recovery of Ksh21 billion owed by non-compliant employers. These funds are critical to ensure timely payments to hospitals. All public sector employers are already compliant,” the PS said.

"Where there is non-compliance despite engagement and notice, the law will be followed, including penalties. We do this not to be punitive, but to be fair to the millions of Kenyans who are faithfully contributing."

PS Oluga had presided over the official flag-off of the SHA Rapid Results Employer Compliance Initiative, a campaign set to begin in Nairobi and targets recovery of over Ksh 3 billion in unpaid statutory contributions from more than 12,900 formal sector employers.

“This is not about punishment—it is about responsibility,” said Dr. Oluga, urging employers to comply with the 2.75% statutory deduction, remitted by the 9th of every month, as required by law. The Ministry added that the funds are essential for paying hospitals and ensuring uninterrupted healthcare services.

PS Oluga noted that the government has already taken up full responsibility for primary healthcare through the Primary Healthcare Fund, while the Emergency, Chronic and Critical Illness Fund provides additional coverage for complex conditions—both administered by SHA.

The PS reiterated that SHA now operates a digital, transparent, and accountable system, capable of tracking employer contributions and flagging non-compliance in real time. He also highlighted Lipa SHA Pole Pole, a flexible instalment option for informal sector contributors.

The Ministry warned employers who fail to comply despite engagement will be subjected to enforcement measures in accordance with the law, adding that these actions are necessary to uphold fairness and protect the integrity of Kenya’s public health insurance system.

“This is a new SHA, with a new mandate and a new way of doing things. Let us each do our part in building a health system that works for all,” added Dr Oluga.

In addition to disrupting SHA operations, delayed remittances put employees and their families at risk, as they rely on the medical coverage for essential healthcare services. Legally, it is the responsibility of employers to ensure these deductions are submitted to the government on time.

The move came on the same day the High Court ruled that the 2.75 percent deduction from gross income for the Social Health Insurance Fund (SHIF) was illegal.

Justice Chacha Mwita, who delivered the judgment on Monday, June 23, stated that the mandatory SHIF contribution amounts to double taxation and is therefore inconsistent with existing income tax laws.