Paying NHIF penalties via M-Pesa: Understanding Late Payments and Penalties

The process of paying NHIF penalties via M-Pesa is crucial to address comprehensively. NHIF operates under the Ministry of Health’s directive, and members are required to make monthly payments by the 9th of each month. Any payment made after this date is considered late and incurs penalties.

NHIF Late Payment Penalties:

Penalties for late payments vary for individuals in the formal and informal sectors. For those in the formal sector, the penalty is equal to the amount of their regular contribution, meaning they will pay double the usual amount. For self-employed individuals, a 50% penalty charge is applied for late payments. For example, if you contribute Ksh. 500 per month, your late payment would be Ksh. 750.

How do I pay my NHIF penalty for late payment?

Here’s how to pay NHIF penalties via M-Pesa:

  1. Open M-Pesa: Access the M-Pesa menu on your mobile phone.
  2. Select Lipa na M-Pesa: Choose the “Lipa na M-Pesa” option.
  3. Choose Pay Bill: Select the “Pay Bill” option from the available choices.
  4. Enter Business Number: Input the NHIF Pay Bill number, which is 200222.
  5. Enter Account Number: Provide your National ID number, followed by the letter “Y” for penalty payments (e.g., 12345678Y).
  6. Input Amount: Enter the penalty amount you need to pay, including the 50% penalty charge for self-employed individuals or the full amount for formal sector members.
  7. Enter M-Pesa PIN: Input your M-Pesa PIN to authorize the transaction.
  8. Confirm Payment: Review the transaction details and confirm your payment.
  9. Receive Confirmation: You will receive an M-Pesa confirmation message, which serves as proof of your penalty payment.

To avoid penalties, ensure that you make your NHIF payments on time each month.