NHIF penalties are fines that are imposed on either a contributor or an employer for failure to remit contributions or paying them past the due date which is usually the 9th of every month.
The penalty for a self-employed person is 50% of the monthly contribution. i.e. Ksh 250 for every month defaulted or late. For example if you have not paid NHIF for 4 months, you will be imposed a penalty of Ksh 1,000 and a contribution of Ksh 2,000.The total amount being Ksh 3,000.
The penalty for an employer who has paid past the due date or who has defaulted is twice the total amount of employee contributions. For example if your employee monthly total NHIF deductions are Ksh 10,000 and have defaulted for two months, you are liable to a penalty of Ksh 40,000 i.e. 10,000*2*2 and a total contribution of Ksh 20,000. The total amount being Ksh 60,000.
How can I avoid NHIF penalty?
The best way to avoid a penalty is by subsequently paying NHIF contributions way before the deadline. This requires proper cash flow planning for both an individual and an employer so that you are not caught off guard with other expenses.
Furthermore, most people pay their NHIF payments on the due date. The risk to this is that the NHIF system may be down due to clogging as everyone is making their payments on the same day hoping to beat the deadline. This will result to missing the deadline and thus incurring a penalty.
As an employer, if for any reason you anticipate beforehand that you will not be able to remit NHIF payments on time, inform you’re domicile NHIF branch in writing, so that you can have grounds to ask for a penalty waiver.
How do I check my NHIF penalties?
There are three ways that you can use to check the status of your account