Amid public concerns, (SHA) has been formulated by Govt
Managing Director of SHA Elijah Wachira said in a statement that section 17(1) of the Social Health Insurance (SHI) Laws clearly states that the institution shall derive income from payment activities through the monthly deduction
Wachira said that, “this deduction is 2. 75 percent which is made from the gross salary or salaries of permanent employees, which is given by the employer on the ninth day of every month.
“Common questions about legal deductions from paying taxes are other concerns. 2. 75% of the gross salary or salary for households that receive income from salary activities is the basic salary and allowances paid to the employee every month.
CEO SHA was forced to act after reports of delays in disbursements from some employers accused the government of not explaining the nature of the withdrawals.
While Wachira was speaking on the matter, he warned employers not to give money to SHA. According to him, all deductions should be taken based on the individual’s monthly income.
Wachira added that the industry had reported that some employers paid the same amount as SHA per employee.
He also revealed that contributors under the new health insurance plan are eligible for tax credits. However, to get the tax exemption, you need to seek clarification from the Kenya Revenue Authority (KRA).
Wachira said: “We believe that SHIF contributors should participate in the insurance premium, but we recommend that you contact KRA to arrange this.
This clarification came a week after Heath’s head Harry Kimtai told the public that challenges in the first phase of the SHA rollout were being resolved.
At the stakeholders meeting in Nairobi, PS Kimtai confirmed that payments would be 75 percent of the household income, saying that for those who are not on salaries, the exact costs based on their ability to use are determined from the unit testing tool.
“The registration was successful. In this meeting, we agreed to work with the cities to increase the facilities. I want to assure the people that they will get more benefits from the NHIF,” Kimtai explained.
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