In Short: SHIF Health Contribution Rates (2026)
The Social Health Insurance Fund (SHIF) replaces NHIF in Kenya, establishing a contribution rate of 2.75% across an employee’s total gross monthly remuneration. The minimum statutory monthly contribution is KES 300. Unlike NHIF, there is no maximum upper cap for salaried employees. Employee SHIF contributions are an allowable deduction, reducing your taxable income before PAYE tax calculation.
Transitioning from the legacy NHIF graduated system to SHIF represents the most significant reform in Kenyan healthcare financing in decades. Utilizing an accurate PAYE calculator ensures that you correctly factor in how SHIF reduces your taxable income, lowering your overall PAYE bill.
SHIF contribution calculator
Enter your gross monthly remuneration below to calculate your exact 2.75% SHIF contribution and see how much PAYE tax you save due to its pre-tax deductible status.
SHIF rate, minimum and rules
Under the Social Health Insurance Act, universal healthcare is funded through the Social Health Authority (SHA). Key operational parameters include:
- Contribution Rate: Exactly 2.75% calculated on total gross monthly remuneration.
- Statutory Minimum: KES 300 per month for individuals earning below KES 10,909 or those in the informal economic sector.
- No Upper Cap: Unlike NHIF which had a fixed ceiling of KES 1,700, SHIF scales continuously with salary. An employee earning KES 500,000 contributes KES 13,750 monthly.
- Deduction Timeline: Deducted by employers monthly and remitted to SHA on or before the 9th day of the subsequent month.
SHIF vs NHIF: Key Differences
Comparison: Legacy NHIF vs Active SHIF System
| Feature |
Legacy NHIF System |
Active SHIF Framework (2026) |
| Calculation Method |
Graduated flat monthly tiers |
Straight 2.75% percentage of gross |
| Minimum Contribution |
KES 150.00 |
KES 300.00 |
| Maximum Contribution |
KES 1,700.00 (Flat cap above KES 100k) |
No upper cap for salaried staff |
| Tax Treatment |
Qualified for 15% insurance relief |
Deducted pre-tax as allowable statutory deduction |
Is SHIF tax deductible?
Yes. The Kenya Revenue Authority treats employee SHIF contributions as an allowable statutory deduction under the Income Tax Act. Because SHIF reduces your gross taxable income, high-income earners in the 30% or 35% tax brackets effectively receive substantial tax relief. To understand how this compares to other statutory deductions, explore our statutory deductions hub, review our NSSF calculator, and inspect our guide to insurance relief and deductions.