The Social Health Insurance Fund (SHIF) replaced NHIF in October 2024. If you want to calculate exactly how much SHIF is deducted from your salary — or compare it to what you used to pay under NHIF — this guide gives you the formula, worked examples, and a comparison table.
How to Calculate Your SHIF Deduction
The SHIF calculation is simple:
SHIF = Gross Salary × 2.75%
Minimum deduction: KES 300 per month Maximum deduction: No cap
For any gross salary above KES 10,909, the formula applies directly. For salaries below KES 10,909, the minimum of KES 300 applies.
SHIF Calculator — Your Monthly Deduction
Use this formula or refer to the table below:
| Monthly gross salary | SHIF deduction (2.75%) |
|---|---|
| KES 10,000 | KES 300 (minimum) |
| KES 15,000 | KES 413 |
| KES 20,000 | KES 550 |
| KES 25,000 | KES 688 |
| KES 30,000 | KES 825 |
| KES 35,000 | KES 963 |
| KES 40,000 | KES 1,100 |
| KES 45,000 | KES 1,238 |
| KES 50,000 | KES 1,375 |
| KES 52,500 | KES 1,444 |
| KES 60,000 | KES 1,650 |
| KES 75,000 | KES 2,063 |
| KES 100,000 | KES 2,750 |
| KES 150,000 | KES 4,125 |
| KES 200,000 | KES 5,500 |
| KES 300,000 | KES 8,250 |
| KES 500,000 | KES 13,750 |
For any salary not in this table: multiply your gross salary by 0.0275.
SHIF vs NHIF — How Much More Are You Paying?
This is the most asked question since SHIF replaced NHIF. Under NHIF, contributions were fixed bands. Under SHIF they are a percentage — meaning higher earners pay significantly more.
| Monthly gross salary | Old NHIF (fixed band) | New SHIF (2.75%) | Difference |
|---|---|---|---|
| KES 10,000 | KES 150 | KES 300 | +KES 150 |
| KES 20,000 | KES 600 | KES 550 | -KES 50 |
| KES 30,000 | KES 850 | KES 825 | -KES 25 |
| KES 40,000 | KES 950 | KES 1,100 | +KES 150 |
| KES 52,500 | KES 1,200 | KES 1,444 | +KES 244 |
| KES 75,000 | KES 1,400 | KES 2,063 | +KES 663 |
| KES 100,000 | KES 1,700 | KES 2,750 | +KES 1,050 |
| KES 200,000 | KES 1,700 | KES 5,500 | +KES 3,800 |
The crossover point is around KES 25,000–30,000. Below that range, some earners actually pay less under SHIF than they did under NHIF. Above KES 30,000, almost everyone pays more.
Is SHIF a Pre-Tax Deduction?
Yes — and this partially offsets the higher cost. SHIF is deducted from your gross salary before PAYE tax is calculated. This means it reduces your taxable income, which reduces the PAYE tax you pay.
Example — KES 100,000 gross salary:
Under old NHIF system:
- NHIF: KES 1,700 (not pre-tax)
- Taxable income: KES 100,000 (minus NSSF only)
Under new SHIF system:
- SHIF: KES 2,750 (pre-tax)
- Taxable income: KES 100,000 minus NSSF minus SHIF minus Housing Levy
- PAYE tax is lower because taxable income is lower
The pre-tax status of SHIF saves you approximately KES 825 in PAYE tax for a KES 100,000 salary — partially offsetting the KES 1,050 increase in the contribution itself.
What is the Difference Between SHA and SHIF?
This causes significant confusion. They are related but different:
SHA (Social Health Authority) is the government organisation that administers the healthcare scheme. It replaced the NHIF Board as the managing authority.
SHIF (Social Health Insurance Fund) is the specific fund that collects employee contributions. It is one of three funds under SHA:
- SHIF — funded by your 2.75% salary deduction, covers primary, secondary and tertiary healthcare
- Emergency, Chronic and Critical Illness Fund (ECCIF) — covers emergency and critical care
- Primary Healthcare Fund — funded by government for those who cannot afford contributions
When your payslip says "SHA" or "SHIF", they refer to the same deduction — your 2.75% social health contribution.
How to Verify Your SHIF Contributions Are Being Remitted
Your employer deducts SHIF from your salary and should remit it to SHA by the 9th of the following month. To verify:
- Visit sha.go.ke and log in with your national ID number
- Check your contribution history under your member profile
- If contributions are missing, raise it with your employer's HR department
- If the employer refuses to act, report to SHA's enforcement department
Use Our PAYE Calculator for Full Salary Breakdown
SHIF is one of four mandatory deductions from your Kenyan salary. To see how all four interact and calculate your exact take-home pay, use our free calculator:
The calculator applies SHIF at 2.75%, NSSF Phase 4 rates, Housing Levy at 1.5%, and KRA PAYE bands — giving you the same breakdown you see on your payslip.
Summary
| Item | Value |
|---|---|
| SHIF rate | 2.75% of gross salary |
| Minimum deduction | KES 300/month |
| Maximum deduction | No cap |
| Is it pre-tax? | Yes — reduces taxable income |
| Replaced | NHIF (October 2024) |
| Administered by | Social Health Authority (SHA) |
| Remittance deadline | 9th of following month |
SHIF costs more than NHIF for most earners above KES 30,000 — but the pre-tax status and theoretically broader coverage are the government's justification. Use our PAYE calculator to see your exact monthly deduction.