Rate and base
SHIF is 2.75% of gross salary, deducted from the employee, with a minimum contribution of KES 300 per month and no upper cap. Unlike the old NHIF bands, a raise always increases the contribution proportionally.
From NHIF to SHIF
The Social Health Insurance Act 2023 dissolved NHIF and moved employee health cover to SHIF from October 2024. Employers register on the SHA portal and remit through the unified payroll return.
The PAYE interaction
Since December 2024 the employee's SHIF contribution is deductible from taxable income before PAYE — so a correct payroll calculates SHIF first, reduces taxable pay, then applies the PAYE bands.
Deadline and penalties
Due by the 9th of the following month. Unpaid contributions accrue a penalty of 2% of the amount due for every month they remain outstanding.