SHIF Deduction Calculator Kenya 2026
How much SHIF comes off this salary?
Monthly cash pay before deductions: basic, allowances, overtime and bonus.
SHIF comes off pay before PAYE is worked out, so it lowers the tax.
No employer share. SHIF is paid by the employee only. The employer deducts it and remits it to the Social Health Authority.
No upper limit. It is 2.75% of the whole salary, with a minimum of KES 300.
Tax-deductible. It reduces taxable pay. It does not get the 15% insurance relief.
SHIF deduction
per month · 2026 ratesBreak-even: salaries up to 10,909.09 pay the KES 300 minimum.
How it's worked out
- Take gross cash pay: basic salary, allowances, overtime and bonus. Non-cash benefits are left out.
- Multiply by 2.75%.
- Apply the minimum: if the result is below KES 300, SHIF is KES 300.
- Tax saving: work out PAYE with SHIF deducted and again without it. The difference is the tax SHIF saves; SHIF minus that saving is its real cost.
SHIF at common salaries
| Gross salary (KES) | SHIF per month (KES) | PAYE saved (KES) |
|---|---|---|
| 10,000 | 300.00 (minimum) | 0.00 |
| 15,000 | 412.50 | 0.00 |
| 50,000 | 1,375.00 | 412.50 |
| 100,000 | 2,750.00 | 825.00 |
| 250,000 | 6,875.00 | 2,062.50 |
Questions people ask
How much is SHIF in Kenya?
2.75% of gross salary, with a minimum of KES 300 a month and no upper limit. Anyone earning up to about KES 10,909 pays the KES 300 minimum.
Does my employer contribute to SHIF?
No. SHIF is paid by the employee only. The employer deducts it from salary and remits it to the Social Health Authority.
Is SHIF tax-deductible?
Yes. Since 27 December 2024 SHIF is deducted from pay before PAYE is calculated, which lowers the tax. It no longer qualifies for the 15% insurance relief.
What replaced NHIF?
SHIF, run by the Social Health Authority, replaced NHIF from 1 October 2024. NHIF's fixed bands were replaced by the flat 2.75% rate.
Sources
Rates last checked 13 Sep 2026. Estimates only, not tax or legal advice.