SHA vs NHIF — Everything That Changed in 2024 and 2025
Introduction
Kenya's healthcare system experienced one of its biggest changes in decades when
the country transitioned from NHIF (National Hospital Insurance Fund) to SHA
(Social Health Authority) and the Social Health Insurance Fund (SHIF). The
transition officially began on 1 October 2024, replacing NHIF with a new healthcare
financing structure.
Many Kenyans immediately asked:
- What changed?
- Will I pay more?
- Do I need to register again?
- How is SHA different from NHIF?
This guide explains the major differences in simple language.
Understanding the Names First
Many people mix these terms together:
NHIF
The previous public health insurance system.
SHA
Social Health Authority — the government body now managing healthcare
financing.
SHIF
The Social Health Insurance Fund, which replaced NHIF contributions and operates
under SHA.
Biggest Changes at a Glance
Contribution rules under SHIF moved to a 2.75% of gross salary model with a KSh 300 minimum contribution and no contribution ceiling for salaried employees.
| Feature | NHIF | SHA / SHIF |
|---|---|---|
| Contribution structure | Salary bands | Percentage of income |
| Contribution calculation | Fixed amounts | 2.75% of gross income |
| Minimum contribution | Band-based | KSh 300 minimum |
| Maximum contribution | Had contribution limits | No upper cap currently |
| Registration | NHIF registration | SHA registration required |
| Coverage structure | Single fund model | Multiple healthcare funds |
| Dependants | Covered under NHIF structure | Household registration approach |
Change 1: Contribution Formula Changed
Under NHIF, employees generally contributed using salary bands:
| Salary | NHIF Contribution |
|---|---|
| KSh 30,000 | Fixed band amount |
| KSh 100,000 | Fixed band amount |
Under SHA:
Formula:
SHA Contribution = Gross Salary × 2.75%
Example:
Gross salary:
KSh 100,000
Calculation:
100,000 × 2.75%
Monthly contribution:
KSh 2,750
This means some higher-income earners may contribute more than they previously
paid under NHIF.
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Change 2: Registration Requirements Changed
NHIF members previously used NHIF registration systems.
Under SHA:
- Individuals register under SHA
- Dependants are linked to households
- Employers register employees through the SHA portal
The transition required all Kenyans and dependents to register under SHA.
Change 3: Healthcare Structure Expanded
Under NHIF:
Healthcare financing largely operated under a single scheme.
SHA introduced multiple funding structures:
- Primary Healthcare Fund (PHF)
- Social Health Insurance Fund (SHIF)
- Emergency, Chronic and Critical Illness Fund (ECCIF)
The goal was broader healthcare financing and movement toward Universal Health
Coverage.
Change 4: Digital Systems Became More Central
SHA introduced stronger digital processes for:
- Registration
- Verification
- Employer onboarding
- Claims management
- Contribution tracking
Employers use the SHA portal for employee registration and remittance processes.
Timeline of Key Changes
30 September 2024
- Final NHIF admissions closed
1 October 2024
- SHA implementation began
- SHIF contributions replaced NHIF contributions
Late 2024–2025
- Registration expansion
- Employer onboarding
- Benefit rollout adjustments
Common Questions People Asked During the Transition
"Do I automatically move from NHIF to SHA?"
No. Registration and verification requirements were introduced for SHA participation.
"Will everyone pay the same amount?"
No.
Under SHA:
Higher incomes generally lead to larger contributions because the calculation uses a
percentage-based structure.
"Did NHIF completely disappear?"
NHIF operations ceased and SHA/SHIF replaced the previous system beginning
October 2024.
Frequently Asked Questions
Is SHA the same as SHIF?
No. SHA is the authority, while SHIF is the insurance fund managed under SHA.
Do employers deduct SHA contributions?
Yes. Employers deduct and remit contributions for salaried employees.
Can self-employed people register?
Yes. SHA applies beyond formally employed workers.
Key Takeaway
A simple way to remember it:
NHIF → Fixed contribution bands
SHA/SHIF → Percentage-based contribution system
The transition was not simply a name change.
It changed:
- Contribution calculations
- Registration processes
- Healthcare financing structure
- Digital administration systems
For many Kenyans, understanding how contributions are calculated and how
registration works became the biggest practical change.
Also read: SHA contribution rates for 2026, how to calculate SHA deductions, SHIF vs SHA explained, your payslip deductions guide, and how PAYE is calculated.
