Nairobi — The National Hospital Insurance Fund (NHIF) has warned employers who submit their employees' monthly deductions late that they will be liable for a 9.5 percent penalties.

In a notice, the national insurer said that the penalty is equivalent to the Central Bank of Kenya (CBK) lending rate.

"Employers who fail to remit the employees monthly standard contributions by due date of 9th of every month shall be liable to pay a penalty equal to the lending rate of interest of the amount of the contribution as published by the CBK from tie time," the statement read.

The NHIF Act No. 9 of 1998 indicates that an employer will be responsible for paying the penalty required by the act if they don't report the statutory deductions made from their employees' pay.

Consequently, the employee won't be subject to a fine under this part of the act for the time they are working.

The notice further highlights that self-employed and special contributors will face a 10 percent surcharge on their contributions.

"As pe section19(2) of the NHIF Act self-employed contributors are due shall be liable to pay penalty," the statement read.

As per NHIF, self-employed individuals earning Sh10,000 must remit their Sh500 deductions by the ninth of each month.

The insured must pay the dues in advance, either half-yearly, quarterly, or annually, if his income is unstable.