Sidian Bank Clarifies Role in SHA Collections
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Sidian Bank has clarified its role in handling contributions to the Social Health Authority (SHA) after questions arose from the public about how Social Health Insurance Fund (SHIF) payments are managed.
In a statement, the bank emphasized that it does not hold or manage SHA funds. Its role is limited to collecting contributions from employers and employees and remitting them directly to SHA accounts.
“We do not hold or manage SHA funds,” Sidian Bank said.
CBK’s Licensing of Banks for SHIF Payments
IN 2024, the Central Bank of Kenya (CBK) licensed six commercial banks to collect SHIF payments. The approved institutions were:
- Kenya Commercial Bank (KCB)
- Sidian Bank
- Co-operative Bank
- Equity Bank
- Absa Bank Kenya
- Diamond Trust Bank (DTB)
These banks were selected after consultations between the SHA and employers, who preferred lenders with established payroll integration, strong infrastructure, and reliable systems for managing high-volume transactions.
Contributions Under SHIF
The Social Health Insurance Fund (SHIF) was launched in October 2024 under the Social Health Insurance Act of 2023, replacing the National Health Insurance Fund (NHIF). It requires both employers and self-employed individuals to contribute toward healthcare financing under Kenya’s Universal Health Coverage (UHC) program.
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For the self-employed, the minimum SHA (Social Health Authority) contribution for self-employed individuals in Kenya is KSh 300 per month. Actual contributions are calculated at 2.75% of gross monthly income, determined through a means testing system.
Key details include:
- Contribution Rate: 2.75% of gross monthly income.
- Minimum Contribution: KSh 300 per month.
- Means Testing: Determines the fair contribution for self-employed and unemployed Kenyans.
- Government Subsidy: Covers payments for individuals who cannot afford the minimum.
- Registration: Individuals can register for SHA through sha.go.ke or by dialing *147#.
How to Pay SHIF Through a Bank
To pay SHIF (Social Health Insurance Fund) through a bank, contributors can use one of the six licensed institutions: KCB, Sidian, Co-operative, Equity, Absa, or DTB.
Payment options include:
- Mobile Apps – log into your bank’s app and navigate to the bills or direct payments section.
- Online Banking – access SHIF payment under services or bill payments.
- Branch Banking – visit a licensed bank branch and request to make a SHIF payment.
Details required include either a National ID number or an SHA Client Registry (CR) number. Once validated, contributors can enter the payment amount and confirm the transaction.
Employers can remit SHA contributions through integrated payroll systems linked to their bank, while individuals also have alternatives such as the Afya Yangu portal or the M-Pesa Paybill number 200222.
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.
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