New NHIF Penalty Rates for Defaulters Takes Effect

The new, lowered National Health Insurance Fund default penalty rates are now in effect.

NHIF said last month that self-employed members who miss on their contributions will now face lower fines as of May 1.

Defaulters will pay 10% of the contribution under the new penalty rates.

In the past, default fines were assessed at half the contributor’s amount, or Sh250 every month.

This implies that persons making Sh500 contributions to the scheme will now be required to pay Sh50 as fines each month if they default, a decrease of Sh200 from the prior sum.

The NHIF Act of 1998, which was changed on January 20, 2022, highlights the revised penalty rates for late payments by members, according to NHIF acting CEO Samson Kuhora’s public announcement.

“As per Section 19(2) of the NHIF Act, self-employed contributors who fail to pay their monthly contributions by the day when the monthly contributions are due shall be liable to pay equal to 10 percent of the contribution amount,” Kuhora said.

The 9th day of the month continues to be the due date for members’ monthly payments, beyond which penalties will be assessed for both self-employed contributors and employer remittances.