Transitioning from NHIF to SHIF: Key Dates and What Kenyans Need to Know

Introduction

Kenya’s healthcare landscape is undergoing a significant transformation with the transition from the National Health Insurance Fund (NHIF) to the Social Health Insurance Fund (SHIF). This change, effective from October 1, 2024, aims to provide more inclusive and comprehensive healthcare coverage for all Kenyans. Understanding the nuances of this transition is crucial for both employers and employees to ensure compliance and continued access to healthcare services.​HR Payroll Solutions Africa

Key Dates to Remember

• September 30, 2024: Final date for NHIF admissions.​abadvocates.co.ke+1HR Payroll Solutions Africa+1
• October 1, 2024: Commencement of SHIF benefits.​
• October 9, 2024: Payments received on or before this date will be credited to NHIF.​HR Payroll Solutions Africa+4bdo-ea.com+4Lexology+4
• November 9, 2024, onwards: Payments received from this date will be credited to SHIF. ​

Understanding the Transition

The shift from NHIF to SHIF is part of Kenya’s broader strategy to achieve Universal Health Coverage (UHC). The Social Health Authority (SHA) has been established to oversee this transition and manage the new health insurance framework. ​HR Payroll Solutions AfricaCR Advocates LLP |

Registration Requirements

All Kenyan citizens, including their dependents, are mandated to register with the SHA. Employers play a pivotal role in this process and are required to register their employees and their dependents via the SHA Employer Portal by October 1, 2024. This portal facilitates the management of employee contributions and ensures compliance with the new regulations. ​mgkconsult.co.ke+2abadvocates.co.ke+2Lexology+2bdo-ea.com+1floriculture.co.ke+1

Contribution Rates and Payment Deadlines

Under the SHIF framework, salaried employees are required to contribute 2.75% of their gross monthly income, with a minimum contribution of Ksh 300 per month and no maximum limit. Non-salaried individuals will also contribute 2.75% of their household income, maintaining the same minimum contribution. Employers must remit these contributions by the ninth of each subsequent month. Late payments will incur a penalty of 2% of the unpaid contribution for each period the payment remains outstanding. ​abadvocates.co.keCR Advocates LLP |+1abadvocates.co.ke+1

Enhanced Benefits Under SHIF

The introduction of SHIF brings several enhancements to healthcare benefits:​HR Payroll Solutions Africa+1CR Advocates LLP |+1

• Primary and Emergency Care: All Kenyans will have access to primary health services and emergency treatments, addressing previous limitations where NHIF required full membership for such services. ​
• Outpatient Services: An expanded range of outpatient services will be available, particularly benefiting patients with chronic conditions. ​Kenyans
• Inpatient Care: Standardized reimbursement rates for inpatient care will be implemented, eliminating the discrepancies that existed between public and private institutions under NHIF. ​Kenyans
• Specialized Treatment: Patients requiring specialized treatments will have improved access to foreign healthcare providers for services not available in Kenya. ​Kenyans
• Additional Services: Coverage now includes dental care, assistive devices for individuals with permanent disabilities, and provisions for progressive chronic health conditions, services that were previously excluded under NHIF. ​Kenyans

Implications for Employers

Employers must take proactive steps to ensure compliance with the new SHIF regulations:​CR Advocates LLP |+5HR Payroll Solutions Africa+5abadvocates.co.ke+5

1. Registration: Register with the SHA before October 1, 2024. ​abadvocates.co.ke
2. Employee Enrollment: Register all employees and their dependents with the SHA Employer Portal by the stipulated deadline. ​mgkconsult.co.ke+5abadvocates.co.ke+5Lexology+5
3. Timely Contributions: Remit employee contributions promptly to avoid penalties. ​

Non-compliance can result in significant penalties, including fines up to Ksh 2 million, imprisonment for up to three years, or both. ​abadvocates.co.ke

Conclusion

The transition from NHIF to SHIF marks a pivotal shift in Kenya’s healthcare system, aiming to provide more comprehensive and accessible services to all citizens. Both employers and employees must familiarize themselves with the new requirements and adhere to the set timelines to ensure a smooth transition and continued access to healthcare benefits.​CR Advocates LLP |+1abadvocates.co.ke+1