SHA Issues Fresh Warning to Informal Workers Over 2% Lipa Pole Pole Penalty
Millions of Kenyan households outside formal employment could face growing healthcare contribution bills if they fall behind on their Social Health Authority payments.
Kenya’s Social Health Authority (SHA) has issued a fresh warning to informal-sector workers over penalties for delayed contributions, cautioning members that unpaid balances can attract an additional 2 per cent charge for the period the contribution remains outstanding.
The warning is particularly significant for Kenyans whose income does not come from salaried employment, including traders, farmers, boda boda riders, casual workers, domestic workers and other self-employed people enrolled under the Social Health Insurance Fund (SHIF).
Under Section 27(6) of the Social Health Insurance Act, 2023, anyone who fails to make a contribution by the required deadline is liable to a penalty equivalent to two per cent of the amount due for the period it remains unpaid.
The law states:
“Any person who fails to pay any contribution … on or before the day on which payment is due shall be liable to a penalty equal to two percent.”
The financial consequence does not end with the initial missed payment. As long as the outstanding contribution remains unpaid, the penalty can continue to accumulate.
SHA has also warned that members cannot simply resume using their healthcare cover while leaving unpaid contributions and penalties outstanding.
The Act provides that a person must settle all outstanding contributions and accrued penalties before resuming access to healthcare services under the scheme.
Lipa Pole Pole option
The warning comes as SHA continues to rely on flexible payment arrangements for households whose income is not derived from formal employment.
Unlike salaried workers, who have contributions deducted through their employers, non-salaried households are required to make annual contributions based on their household income as determined through the means-testing process. The law also provides for premium-financing products for non-salaried people.
For members using the Lipa Pole Pole arrangement, keeping up with scheduled payments is therefore crucial to avoid a growing outstanding balance and additional penalties.
The authority has encouraged members to remain up to date with their contributions rather than allowing arrears to accumulate.
Who is affected?
The requirements apply broadly to Kenyan households covered by the Social Health Insurance Act.
Those who may fall within the non-salaried category include:
- Farmers
- Small-scale traders
- Boda boda riders
- Casual labourers
- Domestic workers
- Self-employed Kenyans
- Other households whose income does not come from salaried employment
The Social Health Insurance Act provides that every Kenyan household is liable to contribute to the Social Health Insurance Fund, while the contribution method differs depending on whether household income comes from salaried employment or other sources.
How Kenyans can register
SHA provides several channels through which Kenyans can register and manage their membership.
The authority’s official platform provides options for web self-registration, USSD self-registration and assisted enrolment.
Members can also access SHA services through Huduma Centres and other authorised registration points.
During registration, members provide their identification and contact details before completing the required household and means-testing information. SHA then uses the information supplied to determine the applicable contribution.
The authority’s online systems also allow members to check their coverage status using their identification details.
Warning for members falling behind
For informal workers already struggling to maintain regular payments, the latest warning could have significant consequences.
A missed contribution may not simply remain as an unpaid bill. The outstanding amount can attract the statutory penalty, potentially increasing the amount a member must eventually clear before healthcare access can resume.
The Social Health Insurance Act is explicit on the consequence: outstanding contributions and penalties must be settled before access to healthcare services under the Act is restored.
SHA’s message is therefore clear — members using the Lipa Pole Pole arrangement should keep their payments up to date to avoid penalties and possible disruption of their healthcare cover.
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