SHIF vs NHIF: What Changed for Kenyan Employers Under the Social Health Authority
Published 2026-07-28 · Microstation
Kenya transitioned from the old NHIF scheme to the Social Health Insurance Fund (SHIF) under the Social Health Authority (SHA). The change replaced the old graduated contribution bands with a flat percentage of income — a significant shift for payroll departments.
What changed
Under NHIF, contributions were based on fixed bands keyed to an employee’s salary range. Under SHIF, contributions are calculated as a percentage of gross monthly income, which makes automated payroll calculation essential for accuracy.
The SHIF contribution rate
- ✓SHIF contributions are set at 2.75% of an employee’s gross monthly earnings.
- ✓The employer deducts the contribution from salary and remits it through the SHA/SHIF channels.
- ✓Employer registration and employee enrolment are managed on the SHA portal.
- ✓Check the SHA portal regularly for updated limits, remittance deadlines and employer obligations — the framework continues to be refined.
What employers must do
- ✓Register the company with SHA and enrol all employees.
- ✓Compute 2.75% of gross salary for each employee every pay period.
- ✓Remit contributions within the statutory deadlines.
- ✓Keep accurate deduction records for audits and reconciliation.
saloPoint is SHA ready
saloPoint has been updated for the SHIF/SHA framework and calculates the 2.75% contribution automatically from each employee’s gross pay, alongside PAYE, NSSF and Housing Levy. When statutory rates change, a saloPoint update keeps your payroll compliant without manual reconfiguration.
Streamline your payroll with saloPoint
Automate PAYE, NSSF, SHIF and Housing Levy — download a free trial.