This is complete guide on how much to pay for SHA? Under the State Health Authority (SHA), Kenya’s Social Health Insurance Fund (SHIF) provides a lifeline to affordable healthcare for everyone. Whether you’re employed, self-employed, or retired, SHA adapts its payment structures to suit different income levels, ensuring access to quality services.
With the official launch of the Social Health Authority (SHA) on Tuesday, October 1, Kenyans are now required to contribute 2.75 percent of their income to the scheme, whether as individuals or households.
SHA’s primary goal is to guarantee that all Kenyans can access quality, affordable healthcare, covering everything from health promotion and disease prevention to curative, rehabilitative, and palliative care—without facing financial strain.
This new scheme operates on a model of risk and resource pooling, enhancing the efficiency of the healthcare system. By contributing premiums into a collective fund, individuals ensure that those in need of medical services can access them without direct costs at the point of care.
What is the SHA Contribution Rate?
Under Kenya’s revised healthcare framework, outlined in the NHIF Regulations, 2023, salaried employees must contribute 2.75% of their gross monthly income to the Social Health Authority (SHA). This contribution is solely the employee’s responsibility, with no additional payments from the employer.
The percentage-based contribution ensures payments are proportional to individual earnings, creating a balanced and fair system for everyone. # SHA Contribution
A significant change in the new SHA structure is the reduction of the minimum monthly contribution from KES 500 (under NHIF) to KES 300, making healthcare more accessible and affordable for low-income earners.
SHA offers an extensive range of health services beyond basic care. These include rehabilitation services, screening for common diseases, provision of assistive devices, maternity and child healthcare, cancer treatments, and advanced medical imaging.
It also covers outpatient consultations, critical inpatient care, surgical procedures, specialized pharmacy services, and emergency response. # SHA Contribution
Additionally, SHA provides mental health support, dental care, optical services, renal care, and even treatment options abroad for complex cases.
How much to pay for SHA?
Under Kenya’s new Social Health Authority (SHA) program, contributions are calculated as 2.75% of your income. For salaried employees, this amount is deducted directly from their wages by their employer.
For those not in formal employment, the contribution is 2.75% of their annual income, with a minimum payment of Ksh 300 per year.
The funds collected through this program are directed towards providing comprehensive healthcare services, aiming to ensure that all residents can access quality health services without experiencing financial hardship.
This initiative is designed to promote equitable healthcare across the country, addressing both preventive and curative needs, thus fostering a healthier population. The SHA program represents a significant step towards achieving universal health coverage in Kenya.
Under Kenya’s new Social Health Authority (SHA) program, here’s how the contributions are calculated:
Employed Individuals:
- Contribution Rate: 2.75% of monthly income
- Example Calculation:
- Monthly Income: Ksh 30,000
- Monthly Contribution: 2.75% of 30,000 = Ksh 825
Non-Employed Individuals:
- Contribution Rate: 2.75% of annual income, with a minimum payment of Ksh 300 per year
- Example Calculation:
- Annual Income: Ksh 100,000
- Annual Contribution: 2.75% of 100,000 = Ksh 2,750
- Minimum Contribution: If annual income is below a certain threshold, the minimum payment is Ksh 300
These contributions ensure access to comprehensive healthcare services without financial hardship. Does this help clarify how the payments are calculated for both employed and non-employed individuals?
What is the monthly contribution to the SHA?
Here’s an expanded breakdown of the monthly contribution to the Social Health Insurance Fund (SHIF) under the State Health Authority (SHA) in Kenya, with more detailed explanations in each section:
Monthly contribution to the SHA for Salaried Employees
Salaried employees are required to contribute 2.75% of their gross salary to SHA. This amount is automatically deducted from their monthly income and remitted to the SHIF.
A key advantage is that the contribution is based on earnings, ensuring that those with higher salaries contribute more to the pool, while those with lower salaries contribute less.
The minimum contribution stands at KES 300, meaning that even employees with lower incomes can still access healthcare services.
Since there’s no maximum limit, those who earn more will pay a larger contribution, making the system progressive and equitable.
Monthly contribution to the SHA for Non-Salaried Persons
For non-salaried individuals, such as self-employed persons or those running businesses, the contribution is similarly set at 2.75% of their household income. This category covers individuals who may not have a fixed monthly salary but still generate income.
Like salaried workers, the minimum monthly contribution is KES 300, ensuring that even those with lower or variable incomes are not left behind. # Monthly contribution to the SHA for Non-Salaried Persons
Payments for non-salaried persons must be made within 14 days before the end of the annual contribution period to avoid penalties or lapses in coverage, helping them remain consistent with their payments throughout the year.
Example Calculations
Let’s consider an example to demonstrate how the contributions work. For a salaried employee earning KES 50,000 per month, their monthly contribution would be calculated as 2.75% of KES 50,000, which comes to KES 1,375.
This is an affordable amount for someone in that income bracket, ensuring that their health coverage is well-funded.
For a household with a combined income of KES 100,000 per month, the contribution would be 2.75% of KES 100,000, amounting to KES 2,750. This ensures that the household has adequate healthcare coverage, while those who earn more contribute proportionally to the SHIF pool.
Explanation
The 2.75% contribution rate is designed to ensure that healthcare remains affordable for everyone while distributing the financial burden proportionally. The minimum contribution of KES 300 per month ensures that even those earning low or irregular incomes can access necessary health services.
This system of resource pooling is aimed at achieving equitable healthcare for all Kenyans, as the collective fund supports those who need medical services when they require them, without causing financial hardship.
By pooling risk and resources, SHA is able to improve access to healthcare and provide comprehensive services to the population. Read about How to Register Your Child on the Social Health Insurance Fund (SHIF)? and How to Register for SHA in Kenya?
Conclusion
Knowing the right contributions for SHA ensures comprehensive coverage, giving you and your family peace of mind.
SHA’s flexible payment options and affordable rates help Kenyans from all walks of life secure their health for today and the future.
Planning ahead is crucial. By understanding SHA costs, you can make informed decisions for your health and financial well-being. Feel free to ask more about this or anything else.
