The recent revelation that M-Pesa users registered under the Social Health Authority (SHA) have been experiencing automatic deductions from their wallets without the need for a PIN has sparked significant online debate. This process, triggered by the activation of M-Pesa Ratiba, has raised concerns, especially among users who were unaware of the standing order system set up for SHA contributions.
M-Pesa, Kenya’s largest mobile money platform, confirmed that the signing up process for SHA automatically activates M-Pesa Ratiba. This service, designed to streamline recurring payments, allows users to make automated transactions such as paying rent, subscriptions, and in this case, contributions to SHA. Once set up, users don’t need to input their PIN for future payments; they are processed automatically, according to the schedule set up during the registration.
This has left many Kenyans questioning how this feature operates and, more importantly, how they can manage it. For those who did not intend to opt into automatic deductions, the good news is that it is possible to either opt-out during registration or manage the standing order via the M-Pesa platform.
Understanding M-Pesa Ratiba: The Standing Order System
M-Pesa Ratiba is an automated payment feature that lets users schedule recurring payments. For SHA, this means that once activated, monthly contributions are automatically deducted from users’ M-Pesa wallets. While this system simplifies payments, it has led to confusion since many people did not know it was activated by default when they signed up for SHA.
How to Opt Out or Manage the SHA Standing Order
If you have already signed up for SHA and want to cancel or manage the automated payment, you have a couple of options. The first is during the initial registration process. If you’re registering for SHA, you will be prompted to opt-in to the M-Pesa Ratiba feature. Safaricom advises users to decline the “Lipa SHA Pole Pole” prompt, which would otherwise activate the automated payment.
For those who are already enrolled in SHA and facing ongoing deductions, there is an easy way to manage the standing order through the M-Pesa platform:
- Using USSD: Dial *334# and navigate to the M-Pesa Ratiba option by selecting option 9, then go to “Manage Standing Order.” From there, you can delete the SHA standing order.
- Through the M-Pesa App: You can also manage the standing order via the M-Pesa Mini App. Select the option to manage your Ratiba settings and follow the prompts to delete the SHA standing order.
The Legal Requirement for SHA Registration
It’s important to note that SHA registration is mandatory for all Kenyan residents, as stipulated by the Social Health Insurance Act. Under Section 26(1) of the Act, every adult living in Kenya is required to contribute to the SHA, regardless of employment status. This includes individuals who do not have income but are living with a contributor. The monthly contribution for adults without income is KES 300. The law mandates that contributions must be remitted by the 9th of each month, making SHA contributions comparable to statutory deductions like NSSF and PAYE.
Conclusion: Managing SHA Contributions via M-Pesa
While the automated deduction feature set by M-Pesa for SHA contributions has generated confusion, it is not without solutions. Users can easily opt-out of the standing order during registration or manage it through the M-Pesa platform. By understanding how M-Pesa Ratiba works and taking action, individuals can avoid unwanted deductions and maintain control over their SHA contributions. With SHA registration being mandatory for all Kenyan residents, it’s crucial to stay informed about how contributions are managed to ensure smooth and hassle-free payments.
By taking these steps, M-Pesa users can make the most of the convenience that comes with automated payments while avoiding any unintended financial impacts.
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