Employers and State agencies who fail to remit employees’ standard or matching contributions to the National Hospital Insurance Fund (NHIF) will face an interest penalty equal to the prevailing Central Bank of Kenya lending rate.
The law currently imposes a penalty equal to five times the amount of the contribution that is payable by a person for each month or part thereof during which it remains unpaid.
According to the NHIF act regulations, the employer must make payments on the 9th of every month. If an employer fails to submit the statutory deductions of their employees, the employer will be liable to pay the penalty under the act. In such a case, the employee will not have to pay any fine under this section of the act for the period they are employed.
If you fail to pay your monthly payments or make a late payment, you incur a penalty of Ksh 250 per month. This payments must be paid at any of these branches; Kenya Commercial Bank, Equity Bank, National bank and, Cooperative bank. Please note that the penalties have to be paid at the bank branches and not the agents.)
In addition, you will also pay the premiums, which is Khs 500 every month missed. The premiums can be paid via Mpesa.