Last verified: 16 October 2026. Payroll rules change; confirm current rates with the authority before filing, or let your OurPay specialist do it.
What SHIF is
The Social Health Insurance Fund (SHIF) is administered by the Social Health Authority (SHA) under the Social Health Insurance Act, 2023. It replaced the old NHIF banded contributions with a percentage of pay.
The rate
| Rate | 2.75% of gross monthly pay |
|---|---|
| Minimum | 300 per month |
| Cap | None |
| Who pays | The employee. The employer deducts and remits it. |
| Due | By the 9th of the following month |
Examples
| Monthly gross | SHIF |
|---|---|
| 10,000 | 300 (minimum applies) |
| 50,000 | 1,375 |
| 100,000 | 2,750 |
| 300,000 | 8,250 |
Try it: monthly gross to net pay in Kenya
Estimate for a resident employee with personal relief only. For housing, car, pension and other benefits use the full Kenya payslip calculator.
SHIF comes off before PAYE
SHIF is an allowable deduction against taxable pay, so it reduces PAYE. A correctly configured payslip shows SHIF as a deduction from gross, before the tax calculation. If your payroll works SHIF out after PAYE, PAYE is over-collected and your employees' net pay is understated.
Filing and late payment
Employers register with SHA and remit through its employer portal by the 9th. A February deduction is due by 9 March. Published guidance reports a 2% penalty on the outstanding amount for late remittance, so confirm the current figure with SHA.
Common mistakes
- Continuing to use NHIF-style bands instead of the 2.75% rate.
- Calculating on basic pay when the base is gross pay.
- Applying SHIF after PAYE instead of before.
- Employees on the SHA register not matching the payroll list, which causes mismatched returns.
Frequently asked questions
Does the employer also contribute to SHIF?
Under the Act the contribution is the employee's. The employer's role is to deduct and remit. Employers do pay the Housing Levy and NSSF match, which are separate. See Housing Levy and NSSF.
Is there a maximum SHIF contribution?
No. The 2.75% applies to the whole of gross pay, so higher earners contribute more.