SHIF & NSSF 2026 — What Changed and What It Costs You
The biggest overhaul to Kenyan statutory deductions in a decade. NHIF is gone, SHIF is here, and the NSSF limits have risen. Here is the definitive guide for employees and employers.
Bottom Line: How Much More Are You Paying?
| Salary | Old NHIF | New SHIF | Old NSSF | New NSSF | Net Impact |
|---|---|---|---|---|---|
| KES 50,000 salary | Ksh 1,000 | Ksh 1,375 | Ksh 3,000 | Ksh 3,000 | +KES 375/month more in deductions |
| KES 100,000 salary | Ksh 1,700 | Ksh 2,750 | Ksh 4,320 | Ksh 6,000 | +KES 2,730/month more in deductions |
| KES 200,000 salary | Ksh 1,700 | Ksh 5,500 | Ksh 4,320 | Ksh 6,480 | +KES 5,960/month more in deductions |
Note: SHIF is 2.75% of gross, paid entirely by the employee. Unlike NSSF and the Housing Levy, there is no matching employer SHIF contribution; the employer only deducts and remits it.
SHIF vs NHIF — Side by Side
| Feature | NHIF (Old) | SHIF (2026) |
|---|---|---|
| Rate structure | Fixed tiered (KES 150–1,700/month) | 2.75% of gross salary |
| Minimum deduction | KES 150 (low earners) | KES 300/month |
| High earner impact | KES 1,700 (max) | No cap — scales with salary |
| Who pays | Employee only | Employee only (2.75%, no employer match) |
| Informal sector | Limited coverage | Voluntary KES 300 minimum |
| Hospital network | ~1,200 hospitals | 3,000+ empaneled facilities |
| Coverage | 22% of population | 99% target |
| Tax relief | Limited | Up to 15% of premium on employee share |
SHIF Calculation Examples (2026)
KES 20,000 gross salary
KES 50,000 gross salary
KES 100,000 gross salary
KES 300,000 gross salary
NSSF 2026 — Rate Changes
From 1 February 2026 the NSSF upper earnings limit rose from KES 72,000 to KES 108,000, and the lower limit from KES 8,000 to KES 9,000. The 6% rate is unchanged, so the maximum employee contribution increased from KES 4,320 to KES 6,480 a month, matched by the employer for a combined KES 12,960. Earners below KES 72,000 are unaffected.
| Monthly gross | Employee NSSF (until Jan 2026) | From Feb 2026 | Change |
|---|---|---|---|
| Up to KES 72,000 | 6% of pay (max KES 4,320) | 6% of pay (unchanged) | No change |
| KES 90,000 | KES 4,320 (old cap) | KES 5,400 | +KES 1,080/mo |
| KES 108,000 and above | KES 4,320 (old cap) | KES 6,480 (new cap) | +KES 2,160/mo |
NSSF rates shown are indicative based on the phased implementation schedule. Verify current rates at nssf.or.ke.
Employer Compliance Checklist — SHIF & NSSF 2026
Timeline of Changes
SHIF deductions officially begin
Mortgage interest relief raised to KES 30,000/month
Full NHIF dissolution — all records transferred to SHA
SHIF 2.75% flat rate fully operational
NSSF upper limit raised from KES 72,000 to KES 108,000 (max employee KES 6,480)
Annual review of SHIF rates by the SHA board
Recalculate with New Rates
See your updated take-home with SHIF & NSSF 2026
Employer Compliance Guide
Full payroll compliance checklist for HR and finance