National Hospital Insurance Fund (NHIF) – replaced by SHIF
NHIF no longer applies. The National Hospital Insurance Fund was replaced by the Social Health Insurance Fund (SHIF) on 1 October 2024. Employers deduct SHIF instead of NHIF, at 2.75% of gross salary (minimum KES 300, no cap), and remit it to the Social Health Authority. Read the SHIF rules.
What changed for payroll
- NHIF deductions stop and SHIF deductions start, from the October 2024 payroll.
- The old NHIF insurance relief (15% of premiums) was repealed. SHIF contributions are instead deducted from gross pay when working out taxable pay (from the December 2024 PAYE, under the Tax Laws (Amendment) Act, 2024).
- The NHIF Act (Cap 255) has been replaced by the Social Health Insurance Act, 2023.
Historical NHIF rates (until September 2024)
Kept for reference, for example when checking old payrolls. These rates are no longer in force.
| Gross income (Kshs) | Monthly NHIF premium (Kshs) |
|---|---|
| Up to 5,999 | 150 |
| 6,000 – 7,999 | 300 |
| 8,000 – 11,999 | 400 |
| 12,000 – 14,999 | 500 |
| 15,000 – 19,999 | 600 |
| 20,000 – 24,999 | 750 |
| 25,000 – 29,999 | 850 |
| 30,000 – 34,999 | 900 |
| 35,000 – 39,999 | 950 |
| 40,000 – 44,999 | 1,000 |
| 45,000 – 49,999 | 1,100 |
| 50,000 – 59,999 | 1,200 |
| 60,000 – 69,999 | 1,300 |
| 70,000 – 79,999 | 1,400 |
| 80,000 – 89,999 | 1,500 |
| 90,000 – 99,999 | 1,600 |
| 100,000 and above | 1,700 |