Glossary term
SHIF (Social Health Insurance Fund)
SHIF (Social Health Insurance Fund) is Kenya's health-contribution scheme, administered by the Social Health Authority. It replaced NHIF on 1 October 2024 and is charged at 2.75% of gross monthly pay.
Every Kenyan employer now deducts SHIF. The Social Health Insurance Fund replaced NHIF on 1 October 2024, and at 2.75% of gross pay with no ceiling it is the deduction most likely to surprise a first-time payroll.
Updated October 17, 2026 · Glossary
What SHIF replaced
SHIF is administered by the Social Health Authority and took over from the National Health Insurance Fund (NHIF) on 1 October 2024. If your payroll still shows NHIF, it is out of date. Workers' health cover now runs through SHIF.
How much SHIF costs
SHIF is charged at 2.75% of gross monthly salary with no upper cap. Unlike NSSF it does not stop at a ceiling, so a higher-paid site manager contributes more than a general fundi. The employer deducts the employee's share and remits it with the monthly return.
- 2.75% of gross monthly pay
- No upper cap
- Deducted from the employee and remitted by the employer
- Due by the 9th of the following month
Paying SHIF correctly
SHIF is a monthly statutory return, filed and paid by the 9th of the following month along with PAYE, NSSF and the Affordable Housing Levy. For casual construction labour, gross pay is the wages earned that month, so the deduction should track the muster roll.
Frequently asked questions
Did SHIF replace NHIF?
Yes. The Social Health Insurance Fund replaced the National Health Insurance Fund on 1 October 2024. Payroll lines that still read NHIF should be updated to SHIF.
Is there a maximum SHIF contribution?
No. SHIF is 2.75% of gross monthly salary with no ceiling, so contributions keep rising with pay. This is different from NSSF, which is capped in tiers.
What counts as gross pay for SHIF?
Gross monthly salary before deductions, including wages and taxable allowances. For casual site workers it is the total pay earned in the month, so an accurate muster roll keeps the deduction right.
Keep reading
Guides
SHIF Health Contributions Guide
How SHIF health contributions work in Kenya — 2.75% of gross with no cap, deducted from construction wages and remitted monthly.
Product
Automated Statutory Deductions
FundiPay calculates PAYE, NSSF, SHIF and the Affordable Housing Levy per worker and prepares the returns, keeping site payroll compliant.
Guides
Payroll Statutory Calendar
The monthly construction payroll calendar in Kenya: PAYE, NSSF, SHIF and housing levy returns due by the 9th, what to prepare and the cost of lateness.