Kenya SHIF (Social Health Insurance Fund) Calculator
Calculate exact 2.75% mandatory healthcare deductions under the Social Health Insurance Act 2023 replacing legacy NHIF rates.
🏥 Healthcare Income & Category
Mandatory health insurance contribution under Social Health Insurance Act 2023.
SHIF vs Legacy NHIF Comparison Statutory Health Reform
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❓ Frequently Asked Statutory Questions
What is SHIF and how is it calculated in Kenya?
The Social Health Insurance Fund (SHIF) is established under the Social Health Insurance Act 2023, fully repealing the legacy National Hospital Insurance Fund (NHIF). SHIF is calculated at 2.75% of an employee's gross monthly income, with a statutory minimum contribution floor of KES 300 per month and no upper ceiling cap.
How does SHIF differ from the old NHIF contributions?
The legacy NHIF system used a stepped graduated scale ranging from KES 150 to a maximum cap of KES 1,700 per month (for gross income of KES 100,000 and above). Under SHIF, the 2.75% flat proportional rate removes the upper ceiling entirely, meaning high earners contribute proportionally more (e.g., KES 200,000 gross pays KES 5,500/month under SHIF compared to KES 1,700 under NHIF).
Does SHIF attract Insurance Relief against KRA PAYE?
Yes. Under Section 31 of the Income Tax Act, contributions to SHIF qualify for statutory Insurance Relief calculated at 15% of the contribution amount, subject to an aggregate monthly cap of KES 5,000 (KES 60,000 per year) across qualifying health and life insurance policies.
How are self-employed and informal sector workers treated under SHIF?
Self-employed individuals and non-salaried households in the informal sector contribute 2.75% of their declared annual household income (assessed via statutory means-testing), subject to a minimum monthly contribution of KES 300 (KES 3,600 annually), paid annually or in advance.
What is the penalty for late payment of SHIF contributions in Kenya?
Employers and contributors who fail to remit statutory SHIF deductions by the 9th day of each month incur a statutory penalty of 2% per month or part thereof on the unpaid amount, and employee benefits may be suspended until accounts are regularized.
Engr. Muhammad Shahzad
Verified Tax & Statutory Systems SpecialistCertified Systems Engineer and International Fiscal Policy Researcher. Specializing in computational labor standards, statutory payroll compliance, and tax withholding architectures across Commonwealth and East African Community (EAC) jurisdictions.