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 NSSF rates have increased. 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 1,600 | Ksh 1,728 | +KES 503/month more in deductions |
| KES 100,000 salary | Ksh 1,700 | Ksh 2,750 | Ksh 1,600 | Ksh 1,728 | +KES 1,178/month more in deductions |
| KES 200,000 salary | Ksh 1,700 | Ksh 5,500 | Ksh 1,600 | Ksh 1,728 | +KES 3,928/month more in deductions |
Note: SHIF figures show employee share only (1.375% of gross). Employer also pays 1.375% — a new cost that did not exist under NHIF.
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 |
| Employer share | Employee only | Employee + employer (equal split) |
| 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
The NSSF phased implementation continued in 2026, with the upper pensionable limit stabilised at KES 72,000 after the earlier KES 108,000 proposal was revised. Rates increased slightly from 2024 levels.
| Salary Band | 2024 Rate | 2026 Rate | Change |
|---|---|---|---|
| Below KES 18,000 | KES 400 employee + KES 400 employer | KES 432 + KES 432 | +KES 64 total |
| KES 18,001–36,000 | KES 800 + KES 800 | KES 864 + KES 864 | +KES 128 total |
| KES 36,001–72,000 | KES 1,600 + KES 1,600 | KES 1,728 + KES 1,728 | +KES 256 total |
| Above KES 72,000 | Capped at KES 1,600 | Still capped at upper limit | No change above cap |
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
Parliamentary re-approval of SHIF framework
NSSF upper pensionable limit increased to KES 108,000 (then revised to KES 72,000)
Full NHIF dissolution — all records transferred to SHA
Full SHIF integration — 2.75% flat rate fully operational
NSSF rates reviewed under phased implementation schedule
Annual review of SHIF rates by 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