SHIF on a KSh 50,000 monthly income is KSh 1,375 (2.75%, minimum KSh 300).
How SHIF is calculated
SHIF replaced the old NHIF flat-band system with a straightforward percentage: 2.75% of your gross salary. There's a minimum monthly contribution of KSh 300, so very low earners still pay at least that amount even though 2.75% of their salary would come out lower.
Unlike NSSF and the Housing Levy, SHIF does not affect your PAYE-taxable income calculation. It's deducted independently, alongside PAYE, NSSF and the Housing Levy.
SHIF and your tax
SHIF is deducted from gross pay before PAYE is calculated. On a KSh 100,000 salary that saves about KSh 825 a month in PAYE compared with the old treatment, because the KSh 2,750 contribution is no longer taxed.
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.