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Statutory Compliance5 min read

SHIF vs NHIF: What Changed for Kenyan Employers Under the Social Health Authority

Published 2026-07-28 · By Joseph Kiarie, Founder & Lead Developer

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, or work out any salary first with the free PAYE calculator.

Joseph Kiarie, founder & lead developer,Microstation

Written by

Joseph Kiarie, Founder & Lead Developer, Microstation

Founder and Lead Developer at Microstation and a seasoned IT professional, leading the Nairobi technology consulting firm he established in 1995.