Updated from our October 2024 note. The Social Health Insurance Fund (SHIF), run by the Social Health Authority (SHA), replaced NHIF in October 2024. Employees contribute 2.75% of gross pay, with a minimum of KES 300 a month. There is no upper cap.
Before December 2024, employees received a 15% relief on NHIF and on the Housing Levy. The Tax Laws (Amendment) Act 2024 replaced those reliefs. From 27 December 2024 both SHIF and the Housing Levy are deducted from gross pay before PAYE is computed.
Employees and employers each pay 1.5% of gross pay. Employers remit both shares. Some public calculators still treat the levy as an after-tax deduction, which overstates PAYE.
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General information, not professional advice. Rules change; check the sources above or ask us before acting. Last reviewed 6 Nov 2026.
Founder of Renol Consulting. Researcher in Mineral Economics and Valuation at the University of the Witwatersrand and Lecturer in Finance and Accounting. About Remmy
How Kenyan employers calculate net pay in 2026, step by step: NSSF Year 4 limits, SHIF and the Housing Levy before tax, then PAYE bands and relief, with three salary examples.
Read the article →From February 2026 the upper earnings limit rose to KES 108,000. Employees earning above it pay KES 6,480 a month, matched by the employer.
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