NHIF no longer exists. Since October 2024 employees pay SHIF at 2.75% of gross pay (minimum KSh 300, no cap) to the Social Health Authority, and it is deducted before PAYE.
What happened to NHIF?
The National Hospital Insurance Fund was replaced by the Social Health Insurance Fund, run by the Social Health Authority (SHA), on 1 October 2024. The flat NHIF bands, which topped out at KSh 1,700 a month, were replaced by a percentage contribution with no upper limit.
Most people earning below about KSh 40,000 pay a similar amount or slightly less than before; higher earners pay considerably more. Because SHIF is now deducted before PAYE, part of the increase is offset by lower tax.
No. NHIF deductions stopped at the end of September 2024 and were replaced by SHIF at 2.75% of gross pay.
What were the old NHIF rates?
NHIF used fixed bands from KSh 150 for salaries below KSh 6,000 up to KSh 1,700 for salaries of KSh 100,000 and above.
What is SHIF and how is it different from NHIF?
SHIF (Social Health Insurance Fund) replaced NHIF as the national health cover contribution. Instead of flat bands based on income ranges, SHIF is calculated as a straight 2.75% of gross salary, with a minimum monthly contribution of KSh 300.
Is there a maximum SHIF contribution?
Unlike the old NHIF flat-band system, SHIF as a percentage-based deduction does not have a published upper cap for employed individuals; it scales with gross salary.
Who pays the KSh 300 minimum?
Anyone whose 2.75% calculation comes out below KSh 300 per month, typically very low earners, pays the KSh 300 minimum instead.
Is SHIF tax-deductible?
Yes. Since 27 December 2024, SHIF contributions are deducted from gross pay before PAYE is worked out.