SHA Contribution Rates Kenya 2026 — What You Pay Monthly
Introduction
Kenya moved from the former NHIF system to the Social Health Authority (SHA)
framework, with contributions now handled through the Social Health Insurance
Fund (SHIF).
One major change many people noticed was:
Old NHIF → fixed contribution bands
SHA → percentage-based contribution
Many people now ask:
"How much will I pay every month?"
The answer depends mainly on your income level and employment type. Current
contribution rules use a percentage-based model rather than salary bands.
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Current SHA Contribution Rate (2026)
For salaried employees:
SHA contribution = 2.75% × Gross Salary
Rules currently include:
- Minimum contribution: KSh 300 per month
- No maximum contribution cap
Simple Monthly Examples
Here is what salaried employees at different income levels pay.
| Gross Monthly Salary | 2.75% Calculation | Monthly SHA Contribution |
|---|---|---|
| KSh 8,000 | KSh 220 | KSh 300 (minimum applies) |
| KSh 20,000 | KSh 550 | KSh 550 |
| KSh 50,000 | KSh 1,375 | KSh 1,375 |
| KSh 100,000 | KSh 2,750 | KSh 2,750 |
| KSh 250,000 | KSh 6,875 | KSh 6,875 |
Step-by-Step Example
Suppose James earns:
Gross Salary = KSh 80,000
Calculation:
KSh 80,000 × 2.75%
Monthly SHA contribution:
KSh 2,200
That amount becomes part of his statutory deductions.
What If You Are Self-Employed?
For non-salaried households:
- Contributions are linked to household income assessment (means testing)
- Minimum contribution remains KSh 300 monthly
- The system uses income assessment to determine applicable payments.
SHA vs Old NHIF
Here is how the new SHA model compares with the old NHIF system.
| Feature | NHIF (Old System) | SHA / SHIF |
|---|---|---|
| Contribution structure | Salary bands | Percentage of income |
| Calculation | Fixed ranges | 2.75% of income |
| Minimum payment | Band-based | KSh 300 |
| Maximum contribution | Had limits | No cap |
Why Some Employees Pay More Under SHA
Under NHIF, someone earning:
KSh 100,000
might previously have reached the highest contribution band.
Under SHA:
KSh 100,000 × 2.75% = KSh 2,750
Because SHA scales directly with income, higher earners may see larger deductions.
Common Mistakes People Make
- Using old NHIF salary bands
- Calculating from net salary instead of gross salary
- Assuming contributions have a maximum cap
- Forgetting the KSh 300 minimum contribution
Frequently Asked Questions
Is SHA calculated from gross or net salary?
SHA for salaried employees is calculated using gross salary or wage.
Is there a maximum SHA deduction?
Current guidance indicates no upper contribution cap for salaried employees.
What happens if 2.75% is below KSh 300?
The minimum KSh 300 contribution applies.
Key Takeaway
The simplest formula to remember is:
SHA = 2.75% × Gross Salary
Minimum = KSh 300
Unlike the previous NHIF system, your contribution now generally rises as your
income rises.
Also read: SHA vs NHIF — what changed, SHIF vs SHA explained, how to calculate SHA deductions, your full payslip deductions guide, and how PAYE is calculated.
