SHIF Calculator Kenya (2026) | 2.75% SHA Deduction
Patrick Buyela
Verified by Patrick Buyela, Payroll Expert · Updated March 2026

SHIF Calculator Kenya

Calculate your exact Social Health Insurance Fund (SHIF) contributions. This 2026 tool computes the mandatory 2.75% uncapped employee deduction based directly on your gross monthly salary.

Employee Earnings
KES

Pro Tip: Under the Social Health Insurance Act, the SHIF deduction is completely uncapped. The 2.75% rate strictly applies to your total gross monthly earnings without any upper limit.

SHIF Deduction Breakdown
Base Gross Salary
KES 0
SHIF Employee Deduction 2.75% of Gross Salary
- KES 0
Total SHA Remittance (2.75%)
KES 0
*Remitted to the Social Health Authority before the 9th of the following month.

Understanding the SHIF Rates

Our SHIF Calculator operates using the updated 2026 parameters. These rules were officially gazetted by the Ministry of Health and are enforced by the Social Health Authority (SHA), which replaces the former NHIF system.

How the 2.75% Deduction Works

The Kenyan health insurance system transitioned from the old NHIF tiered brackets to a flat-rate model. Under the new system, employees contribute a flat 2.75% of their entire gross salary. This tool processes that exact calculation.

Levy Component Statutory Rate Calculation Logic
Employee Deduction 2.75% Withheld directly from the employee's total gross pay.
Employer Contribution 0% Employers only match if contractually agreed, not statutory.
Earnings Cap None There is no upper limit; applies to all gross earnings.

Frequently Asked Questions

Is there a maximum cap on the SHIF deduction?
No. Under the Social Health Insurance Act, the SHIF levy is entirely uncapped. The 2.75% deduction applies to your total gross salary regardless of how high your earnings might be.
Does the employer have to match the employee's SHIF deduction?
No. The law mandates that SHIF is solely an employee deduction. The corporate employer is only legally required to withhold the 2.75% from the employee's gross pay and remit it to the authority.
Are expatriates and foreign workers mandated to pay SHIF in Kenya?
Generally, yes. Foreign national employees working under a local Kenyan contract are subject to standard statutory health deductions, including SHIF.
Is the SHIF deduction applied before or after PAYE tax?
The SHIF deduction is properly treated as an allowable deduction under KRA guidelines. It is subtracted from the employee's gross pay before the progressive PAYE tax bands are applied.
When is the exact deadline for remitting the SHIF to the authority?
The statutory remittance must be submitted to the Social Health Authority before the 9th day of the following month to avoid financial penalties.

Struggling with local statutory compliance?

If managing multiple statutory taxes is draining your internal resources, Two Max Group provides expertly managed Employer of Record outsourcing solutions to eliminate your compliance risk.

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