What is SHIF?
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The Social Health Insurance Fund (SHIF) is Kenya's mandatory health insurance scheme that replaced NHIF on 1 October 2024. It is charged at 2.75% of gross monthly salary under the Social Health Insurance Act 2023.
SHIF is administered through the Social Health Authority (SHA). It aims to broaden health coverage across the population and is funded by contributions rather than the old NHIF graduated tables.
The wider health financing framework includes a primary health care component, the social health insurance component, and an emergency component. Confirm the current structure and budget figures on the SHA or Ministry of Health pages rather than relying on a single quoted total.
- Primary health care: outpatient and preventive care.
- Social health insurance: inpatient cover and chronic illness management.
- Emergency cover: urgent and critical care.
Employees see SHIF as a payroll deduction at 2.75% of gross. This replaced the National Hospital Insurance Fund (NHIF).
Background of NHIF
NHIF was Kenya's health insurance fund for many years before SHIF, beginning as a scheme for formal workers and later expanding to cover inpatient and outpatient services and maternity support.
Over time, membership widened beyond the formal sector. The fund used a graduated contribution table based on income bands.
NHIF faced challenges with sustainability, claims processing, and coverage of the informal sector. These challenges informed the move to SHIF. For the detailed history and figures, refer to official Ministry of Health and SHA publications.
Why NHIF Was Replaced
NHIF was replaced to broaden coverage, improve health financing, and move to a single fund under the Social Health Authority. The change was made under the Social Health Insurance Act 2023.
SHIF charges 2.75% of gross salary in place of the old NHIF graduated table. It aims to cover informal workers through voluntary membership and to integrate with devolved health services.
The reform also moved health contributions onto a percentage-of-gross basis. SHIF is a deduction from taxable income under the Tax Laws (Amendment) Act 2024, which is different from how NHIF was treated.
For the policy rationale and any pending court matters, refer to official SHA and Ministry of Health sources rather than relying on a single quoted statistic.
Transition Timeline from NHIF to SHIF
SHIF deductions began on 1 October 2024 at 2.75% of gross salary, replacing NHIF contributions. The migration from NHIF to SHIF was rolled out under the Social Health Authority.
The transition has involved registration of members, integration with payroll, and the move of functions from NHIF to SHA. Confirm the current status and any outstanding legal matters on the SHA portal.
| Stage | Activity |
|---|---|
| Setup | Social Health Authority established and operationalised under the Social Health Insurance Act 2023. |
| Deductions begin | 2.75% of gross deducted from 1 October 2024; member registration via SHA channels. |
| Migration | Transfer of functions from NHIF to SHA and activation of the member portal. |
Employees should track the SHIF line on their payslips and register through SHA channels. Employers process the deduction through payroll.
Setting Up the SHA
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The Social Health Authority was established to run SHIF under the Social Health Insurance Act 2023. This included setting up oversight and the regulatory framework for the new fund.
Government policy emphasised primary health care and integration with county health services. For announcements, monitor the Ministry of Health and SHA channels.
Employers reviewed their statutory deductions to align SHIF with NSSF and the Affordable Housing Levy in payroll.
Registration and Rollout
From 1 October 2024, the 2.75% deduction applied and members registered through SHA channels. Voluntary members in the informal sector register directly.
Use the SHA registration channels and the member portal to set up cover. Confirm the current registration steps on the SHA portal, as details can change.
Employees who have questions about a deduction should check it against their payslip and the SHA member portal.
Migration and the Member Portal
Functions moved from NHIF to the Social Health Authority during the migration. The member portal supports claims and the management of cover.
Cover extends to dependents, including a spouse and children, subject to SHA rules. Confirm the benefit details on the SHA portal.
Keep your details up to date in the member portal so claims can be processed smoothly.
SHIF Deduction Rate and Structure
SHIF is charged at 2.75% of gross monthly salary, with a minimum of KES 300 per month and no upper cap. It is collected through payroll alongside PAYE, NSSF, and the Affordable Housing Levy.
The rate applies to gross pay rather than a graduated table. SHIF is a deduction from taxable income under the Tax Laws (Amendment) Act 2024, so it reduces your chargeable pay before PAYE is applied.
SHIF is administered by the Social Health Authority. Confirm the current rate and minimum on the SHA or KRA iTax portal.
Voluntary members in the informal sector contribute based on the SHA rules, subject to the minimum. Check the SHA portal for the current voluntary contribution figures.
How to Calculate Your SHIF Deduction
The formula is simply 2.75% of gross monthly salary, subject to the KES 300 minimum and no maximum. For a worker earning KES 50,000, that is KES 1,375. For one earning KES 100,000, it is KES 2,750.
Use the SHA channels to confirm your contribution. Employers process SHIF alongside PAYE, NSSF, and the housing levy.
| Gross Monthly Salary (KES) | SHIF at 2.75% (KES) |
|---|---|
| 20,000 | 550 |
| 50,000 | 1,375 |
| 80,000 | 2,200 |
| 100,000 | 2,750 |
| 300,000 | 8,250 |
There is no ceiling, so the deduction keeps rising with gross pay. Verify your figure against your payslip each month.
Minimum and Coverage
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The minimum SHIF contribution is KES 300 per month, and there is no upper ceiling. Formal employees contribute 2.75% of gross through payroll.
Self-employed and informal workers register voluntarily through SHA channels and contribute under the SHA rules. Confirm the current voluntary figures on the SHA portal.
- Formal employees: 2.75% of gross, minimum KES 300, no cap.
- Informal and self-employed: voluntary contribution under SHA rules, subject to the minimum.
Cover can extend to a spouse and children, subject to SHA rules. Registration supports access to outpatient, inpatient, and maternity benefits.
Registration Process for SHIF
Register through the SHA channels, such as the official SHA portal or the listed USSD and registration points. This sets up your SHIF membership.
Prepare your requirements beforehand, including a valid ID and your details. Informal sector workers and self-employed individuals can register as voluntary members.
- Use the SHA portal or registration channel and select SHIF registration.
- Complete the verification steps as directed by SHA.
- Add dependents such as a spouse and children, subject to SHA rules.
- Receive your member number and access your digital membership.
Confirm the current registration steps and any helpline on the SHA portal, since these details can change.
Once registered, use the member portal to manage contributions and view your cover. Employers handle the payroll deduction for formal workers.
Key Benefits Under SHIF
SHIF covers outpatient and inpatient care at empaneled facilities, along with maternity and emergency cover, under the Social Health Authority. The exact benefit packages and tariffs are set by SHA, so confirm the current details on the SHA portal.
Inpatient and outpatient cover applies at empaneled facilities under SHA rules. Cover can extend to a spouse and children.
Maternity and emergency cover are included under the SHA benefit packages. For the current tariffs and conditions, refer to the SHA portal rather than relying on a single quoted figure.
These benefits are funded by the 2.75% contribution. Register through SHA channels to access the member portal and your cover.
Differences Between SHIF and NHIF
SHIF replaces NHIF's graduated contribution table with a flat 2.75% of gross, with a KES 300 minimum and no cap. It moves to a single fund under the Social Health Authority.
Contributions are now a percentage of gross rather than a banded figure. SHIF is also a deduction from taxable income under the Tax Laws (Amendment) Act 2024.
The reform replaced NHIF on 1 October 2024 under the Social Health Insurance Act 2023. It aims to widen coverage, including the informal sector through voluntary membership.
The table below summarises the main differences. Confirm the current details on the SHA portal.
| Feature | NHIF | SHIF |
|---|---|---|
| Contribution model | Graduated table by income band | 2.75% of gross, minimum KES 300, no cap |
| Administration | National Hospital Insurance Fund | Social Health Authority |
| Legal basis | NHIF Act | Social Health Insurance Act 2023 |
| Tax treatment | Insurance-relief item | Deduction from taxable income (TLAA 2024) |
What Changed for Members
The old NHIF graduated table no longer applies, and the deduction is now 2.75% of gross. The minimum is KES 300, and there is no upper ceiling.
Members register through SHA channels, and cover can extend to a spouse and children, subject to SHA rules. Informal sector members can join voluntarily.
For the benefit packages, empanelment list, and any waiting periods, refer to the SHA portal.
Implementation Notes
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The move from NHIF to SHIF involved payroll integration, member registration, and the transfer of functions to the Social Health Authority. There have been legal and administrative matters during the rollout.
For the current status of any court cases, empanelment, and operational issues, refer to official SHA and Ministry of Health sources rather than relying on a single quoted figure.
Employees should confirm their SHIF deduction on their payslips and raise any disputes through the SHA channels.
Frequently Asked Questions
What is SHIF?
SHIF is the Social Health Insurance Fund, Kenya's mandatory health insurance scheme that replaced NHIF on 1 October 2024 under the Social Health Insurance Act 2023. It is administered by the Social Health Authority and charged at 2.75% of gross salary.
What replaced NHIF in Kenya?
The Social Health Insurance Fund (SHIF) replaced NHIF on 1 October 2024, under the Social Health Insurance Act 2023, administered through the Social Health Authority (SHA).
How are SHIF deductions calculated in Kenya?
SHIF is 2.75% of an employee's gross monthly salary, with a minimum of KES 300 per month and no upper cap. For example, a KES 50,000 salary gives KES 1,375 and a KES 100,000 salary gives KES 2,750. Employers deduct it and remit it to the SHA.
Is there a cap on SHIF contributions?
No. SHIF has no upper ceiling. It is 2.75% of gross with a minimum of KES 300 per month, so the deduction keeps rising with gross pay. Confirm the current rate on the SHA or KRA iTax portal.
What are the main differences between SHIF and NHIF?
SHIF replaces NHIF's graduated contribution table with a flat 2.75% of gross, moves administration to the Social Health Authority, and is a deduction from taxable income under the Tax Laws (Amendment) Act 2024. Confirm the current benefit details on the SHA portal.
When did SHIF deductions start, and what happened to NHIF?
SHIF deductions began on 1 October 2024. Functions moved from NHIF to the Social Health Authority during the migration. Confirm the transition details for existing members on the SHA portal.