The government has begun a tough crackdown on more than 45,000 employers across the country who have failed to remit Sh21 billion in mandatory health insurance deductions, with Nairobi employers alone responsible for over Sh3 billion in arrears.

Medical Services Principal Secretary Ouma Oluga, speaking during the launch of the Social Health Authority (SHA) Rapid Results Compliance Initiative at the SHA headquarters in Nairobi, said the move aims to enforce the Social Health Insurance Act and unlock funds urgently needed to pay hospitals and sustain Kenya’s new universal healthcare plan.

“If you are an employer who deducts money from employees’ salaries but delays or fails to remit it to SHA, the government is coming for you,” Oluga warned.

He announced that 12,900 employers in Nairobi have been identified for enforcement in the first phase of the initiative, and that over 100 SHA compliance officers have already been deployed.

The drive will next expand to Kiambu and Kajiado counties before rolling out nationwide.

“The Initiative in Nairobi is targeting recovery of over Sh3 billion from 12,900 non-compliant employers. Employers must remit the 2.75% health deduction monthly or face enforcement under the law,” Oluga said.

Under the new health financing law, employers are required to deduct and remit 2.75 percent of employees’ gross monthly salaries to SHA by the 9th of every month.

Although 98,112 employers have registered on the SHA digital portal, only 53,000 have complied with the law that took effect in October 2023.

Oluga noted the government will now work to compel the remaining 45,112 employers to register and remit contributions.

“Let me be clear: this is not about punishment. It is about building and strengthening partnerships and shared responsibility,” he said.

The PS said non-compliance is already hurting hospitals, patients, and the health system. “We have patients in hospitals who are aware they are fully registered with the Social Health Authority by virtue of being employed, but their employers have not yet remitted the money,” he said.

He said this situation has caused friction between patients, hospitals, and SHA, leading to complaints that the authority is failing its purpose. “This is some of the noise across the country that SHA is not working, and we want to end this once and for all,” Oluga said.

The PS said SHA officers will work directly with employers to support them and explain legal obligations. He also highlighted the availability of flexible options like “Lipa SHA Pole Pole” for informal sector workers.

He added that timely remittance is key to ensuring hospitals are paid by the 14th of every month, in line with the government’s broader goal to strengthen universal health coverage.

“Employers must fulfill their legal obligations. A functioning health system requires collective effort,” he said.

The Ministry of Health said more than 24 million Kenyans have already enrolled with SHA, marking progress in the transition to a more inclusive and accountable national health insurance system.