It is now mandatory in Kenya for salaried public and state officers to contribute a given percentage of their gross salary towards the National Health Insurance Fund, NHIF. According to the current NHIF rates, the employer must remit 2% of the employee’s gross salary subject to a maximum of Ksh. 1,700 if the gross income exceeds Ksh. 100,000.
While NHIF insurance membership is compulsory for those employed in the formal sector, those in the informal sector, self-employed and retirees are free to join voluntarily. For those in formal employment, contributions are pegged on their gross income.
Those in the informal sector, self-employed, retirees and voluntary individuals pay the fixed NHIF rate of Ksh. 500 per month or Ksh. 6,000 per year.
NHIF Monthly Contribution Rates for Employees
The table shows the current NHIF payment rates that are deducted by employers from their employees’ salaries at the end of each month. The rates are based on 2% of an individual’s gross income, with a maximum cap of Ksh. 1,700 for those earning Ksh. 100,000 or above.
The lowest contribution for individuals under formal employment is Ksh. 150 for those earning between 0 and 5,999 shillings.
Employee’s Monthly Gross Income (Ksh)
NHIF Rates Per Month (Ksh)
6,000 – 7,999
8,000 – 11,999
12,000 – 14,999
15,000 – 19,999
20,000 – 24,999
25,000 – 29,999
30,000 – 34,999
35,000 – 39,999
40,000 – 44,999
45,000 – 49,999
50,000 – 59,999
60,000 – 69,999
70,000 – 79,999
80,000 – 89,999
90,000 – 99,999
100,000 and above
NHIF Penalties for Late Remittances
If the employer fails to remit the employee’s NHIF contributions by the 9th of every month, the employer will be liable to pay late payment penalties. However, this will not affect NHIF service delivery to the scheme members.
For the self-employed, failure to pay contributions by the 9th of every month will incur penalties amounting to 50% of the monthly contribution. That’s 50% of Ksh. 500 which comes to Ksh. 250 on top of the previous month’s premiums.
If you are prone to consistent late NHIF monthly payments, you will be required, in addition to penalties, to pay upfront which can be a year’s contribution.
Activating NHIF Card after Default (Self-Employed)
If your NHIF card has been inactive for over 12 months due to default, you can reactivate it by paying the NHIF reactivation fee of Ksh. 1500. Note that after reactivating the card, you will have to wait for 60 days before you can use it again.