Photo: Mwangiw, Wikimedia Commons, CC BY-SA 4.0How to pay an SHA penalty as an employer in Kenya
The 2% charge, the e-slip and getting staff active again
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What the law and SHA require of employers
| Rule | What it says | Source |
|---|---|---|
| Deadline | Deductions from salaries must be submitted by the 9th of each month (SHIF Regulations 2024, clause 16(1)) | SHA public notice |
| Rate deducted | 2.75% of each employee's gross monthly income, minimum KES 300 a month | SHA premium rates |
| Penalty | 2% of the amount due for each month it remains unpaid | Act s.27(6), SHA FAQ |
| Since when | SHA's penalty module was scheduled to go live on 10 July 2025, with penalties applied from that date onwards | SHA FAQ |
| Access to care | Outstanding contributions and penalties must be paid before services resume | Act s.27(7) |
The penalty is not a fine from a court: the SHA system adds it to your account on its own. SHA says you are told by SMS and email, and the amount appears on your statement of account (SHA).
How the penalty is worked out
SHA's own FAQ puts it simply: penalties are 2% a month on the unpaid contribution, and they keep accruing each month until payment is made (SHA).
- The base is the amount you should have remitted for your staff that month — not your payroll, and not a single employee's salary.
- Example of one month: if KES 50,000 of staff deductions for a month is remitted after the 9th, 2% of that is KES 1,000 for that month of delay. Each further month adds another 2% while the amount stays unpaid.
- Section 27(6) of the Act also mentions "the total annual contributions" in the same sentence, without saying how that changes the base. The figure that binds you is the one on your SHA statement.
Pay an SHA penalty as an employer, step by step
- Log in to the SHA employer portal at employers.sha.go.ke/login. If the company is not registered yet, register first on employers.sha.go.ke (SHA).
- Open your statement of account: it shows contribution history and any penalties (SHA).
- Upload the employee contribution file, select the month of submission and click Submission.
- Click E-slip, choose the bank you want to pay to and print the payment instructions (SHA).
- Pay at the bank with the e-slip number as the reference, or by M-PESA paybill 200222 with the e-slip number as the account number (SHA). SHA lists the collection accounts of its banks on the same page.
- Check the statement again: SHA says penalty payments are updated in real time (SHA). Once the penalty is cleared, the portal can generate the next PRN.
SHA does not publish a separate paybill for penalties: they are paid through the same channels as contributions — M-PESA, bank deposits (cash or cheque) and direct bank transfers (SHA). The individual channels (*147#, the afyayangu.go.ke STK push) are explained in how to pay SHA.
What happens if the penalty stays unpaid
| Consequence | What SHA or the Act says |
|---|---|
| Your company is non-compliant | Employers with unpaid penalties are flagged as non-compliant and the system generates compliance reports (SHA) |
| Your staff lose hospital access | Employees are marked inactive and cannot use SHA services until all outstanding penalties are cleared (SHA) |
| No new payment reference | The system blocks a new PRN — the unique code for each monthly payment — until the penalty is settled (SHA) |
| The debt can be recovered | All sums due to the Authority are recoverable as a civil debt (Act s.49(2)) |
| Criminal offence | Failing without lawful excuse to pay staff contributions in time, or deducting from wages more than the Act allows, is an offence: a fine up to KES 2 million, up to 3 years in prison, or both (Act s.48(1)) |
Your employees feel it first: an inactive member is asked to pay at the hospital. If your staff also need private medical cover on top of SHA, see SHA vs private medical insurance.
Waivers, late bank transfers and mistakes
- Waiver or amnesty: SHA says it is developing structured waiver and amnesty processes, with a category for employers and one for system-triggered errors; the approval workflows were still being built when we checked on 25 October 2026 (SHA).
- Paid on the 9th, received later: SHA mentions a proposal to treat the transaction date as the payment date, and a one-day grace period under consideration for bank delays such as an RTGS landing after the 9th (SHA). Both are proposals, not rules: pay before the deadline and keep your bank confirmation.
- Help with a disputed penalty: SHA's contact centre on 147 handles contributions, PRNs and penalties; the toll-free line is 0800 720 601 and the email customercare@sha.go.ke (SHA contact, public notice).
SHA is not the only statutory cover for staff: every employer must also insure them under WIBA — see our WIBA insurance guide. To compare group medical or WIBA offers from several licensed insurers, ask for quotes.
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Frequently asked questions
How do I pay an SHA penalty as an employer?
Log in to employers.sha.go.ke, check the penalty on your statement, generate the e-slip and pay it at the bank with the e-slip number as reference, or by M-PESA paybill 200222 with the e-slip number as account number.
How much is the SHA penalty for late remittance?
2% of the unpaid amount for each month it stays unpaid, under section 27(6) of the Social Health Insurance Act. Remittances are due by the 9th of each month.
Can I pay SHA penalties by M-PESA?
Yes. SHA says penalties can be paid by M-PESA, bank deposit (cash or cheque) or direct bank transfer, and that payments are updated in real time.
Why can't I generate a PRN on the SHA employer portal?
If penalties are unpaid, the SHA system blocks the generation of a new Payment Reference Number until the penalty is settled.
Can SHA waive an employer's penalty?
SHA says it is developing waiver and amnesty processes, including a category for employers and one for system errors. Until they are in place, raise a disputed penalty with the SHA contact centre on 147.
Sources
- Social Health Insurance Act, No. 16 of 2023 — s.27(6)–(7) (penalty, access to services), s.48(1) (offences) and s.49(2) (recovery as a civil debt) — Kenya Law (Web Archive copy)
- Social Health Authority — Public notice to all employers: compliance reminder for SHIF contributions (July 2025)
- Social Health Authority — FAQs on SHA Penalty Administration: Can I pay penalties via mobile money or bank transfer? (seen 25 October 2026)
- Social Health Authority — FAQ: Once we deduct 2.75% from our employees, how do we upload the data? (employer portal and e-slip, seen 25 October 2026)