The Complete Guide to SHA (Social Health Authority) Contributions in Kenya

By Avatechtax Team — Avatechtax Consultancy

The Social Health Authority (SHA) replaced the National Health Insurance Fund (NHIF) following the Social Health Insurance Act of 2023, with contributions redesigned to be income-based rather than flat-rate. This is one of the biggest payroll compliance changes in Kenya in years.

SHA Contribution Rates

SHA contributions are 2.75% of gross salary for both employees and employers, replacing the old NHIF flat rate of KSh 500 – KSh 1,700 per month. There is no upper cap on contributions, meaning high earners contribute significantly more than before.

SHA Fund Structure

SHA manages three funds: the Primary Health Care Fund (basic outpatient), the Social Health Insurance Fund (inpatient and specialist), and the Critical Illness & Emergency Fund. Contributions are pooled across all three.

Employer Obligations

Deduct 2.75% from each employee's gross salary
Add an equal 2.75% employer contribution
Remit total (5.5% of gross) by the 15th of the following month via the SHA portal
Issue SHA cards or registration confirmations to all employees

Impact on Payslips

For a staff member earning KSh 80,000, the SHA deduction rises to KSh 2,200 (employee) from the previous maximum of KSh 1,700 NHIF. For an employee earning KSh 200,000, the deduction is KSh 5,500 — far higher. Update your payroll software and inform employees of the change.

Avatechtax keeps your payroll SHA-compliant across all our packages. Get started today.

The Complete Guide to SHA (Social Health Authority) Contributions in Kenya

By Avatechtax Team — Avatechtax Consultancy

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