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SHIF Rates Kenya 2026 — NHIF to SHA Transition Explained
Updated April 2026 — HelaBora
What Happened to NHIF?
The National Health Insurance Fund (NHIF) was replaced by the Social Health Insurance Fund (SHIF) in October 2024 as part of the new Social Health Authority (SHA) framework.
Key Changes: NHIF vs SHIF
| Feature | NHIF (Old) | SHIF (New) |
|---|---|---|
| Rate | Fixed bands (KES 150-1,700/mo) | 2.75% of gross salary |
| Cap | KES 1,700/month maximum | No cap |
| Basis | Fixed tiers by salary range | Percentage of actual salary |
| For KES 30,000 salary | KES 600/month | KES 825/month |
| For KES 100,000 salary | KES 1,700/month | KES 2,750/month |
| For KES 200,000 salary | KES 1,700/month | KES 5,500/month |
The big change: High earners pay significantly more under SHIF because there is no upper cap. Someone earning KES 200,000 went from KES 1,700/month to KES 5,500/month — a 223% increase.
How SHIF is Calculated
SHIF = 2.75% × Gross Monthly Salary
| Gross Salary (KES) | SHIF Deduction |
|---|---|
| 20,000 | 550 |
| 30,000 | 825 |
| 50,000 | 1,375 |
| 75,000 | 2,063 |
| 100,000 | 2,750 |
| 150,000 | 4,125 |
| 200,000 | 5,500 |
| 300,000 | 8,250 |
| 500,000 | 13,750 |
Is SHIF Tax-Deductible?
Yes. SHIF contributions are an allowable deduction for Housing Levy purposes but are not deductible for PAYE (unlike NSSF). However, you may claim insurance relief (15% of premiums, max KES 5,000/month) if you have additional private insurance.
Do You Still Need Private Health Insurance?
SHA/SHIF covers basic healthcare at public and some private facilities. However, many Kenyans still maintain private health insurance for: - Access to preferred private hospitals - Faster service and shorter wait times - Coverage for specialist treatments - International coverage
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Frequently Asked Questions
How much is SHIF in Kenya?
SHIF is calculated at 2.75% of your gross monthly salary with no upper cap. For a KES 100,000 salary, the deduction is KES 2,750/month.
Is SHIF more expensive than NHIF?
For salaries above KES 62,000/month, yes. NHIF was capped at KES 1,700/month regardless of salary. SHIF at 2.75% has no cap, so higher earners pay significantly more.
When did SHIF replace NHIF?
SHIF replaced NHIF in October 2024 as part of the Social Health Authority (SHA) framework.