The Social Health Authority (SHA) has cautioned members enrolled in its Lipa Pole Pole payment plan that failure to remit contributions on time will attract a 2 per cent penalty on outstanding balances.
In a public notice, the Authority said the penalty applies to members in the informal sector who delay payments, in line with Section 27(6) of the Social Health Insurance Act, 2023.
The 2 per cent charge will continue to accrue for as long as the unpaid balance remains outstanding.The warning underscores that while the Lipa Pole Pole option allows members to spread their annual contributions into instalments instead of making a single lump-sum payment, all instalments must be paid according to the agreed schedule.
SHA further noted that members with unpaid contributions and accumulated penalties will be unable to access healthcare services funded under the scheme until they clear all outstanding balances.
The notice primarily affects non-salaried households, including farmers, traders, boda boda riders, domestic workers, casual labourers and self-employed Kenyans registered under SHA.
To join the payment plan, members must first complete registration and undergo the mandatory means-testing process, which determines their annual contribution based on factors such as household income, assets and living conditions.
The minimum annual contribution for informal sector members is approximately Sh7,000, although households with higher incomes may be assessed to pay more.
For example, a member with the minimum annual contribution who fails to make payments on time could incur a penalty of Sh140, equivalent to 2 per cent of Sh7,000, depending on how SHA calculates the charge.
However, the Authority has not clarified whether the penalty will apply only to missed instalments or to the total outstanding balance.
Under the Lipa Pole Pole arrangement, members become eligible for healthcare services after paying an amount equivalent to four months of their assessed annual contribution.
They are then required to continue making payments as scheduled to maintain uninterrupted medical cover.
“Members are to keep up with their payment schedules to avoid penalties and interruptions to their medical cover,” SHA said in the notice.
SHA operates separate contribution models for formal and informal sector members. Salaried employees contribute 2.75 per cent of their gross monthly salary, with employers responsible for deducting and remitting the funds directly to the Authority.
As a result, formal sector employees are not required to make manual payments.For informal sector members, annual contributions are determined through the means-testing process, with the option of paying either in a single annual payment or through the Lipa Pole Pole instalment plan.
