It is now mandatory for all households in Kenya to contribute towards their health cover each month, starting March 1st, 2024. Salaried public and state officers, as well as private sector employees, will contribute 2.75% of their gross salary monthly to the Social Health Insurance Fund (SHIF). This contribution will be remitted by employers for their employees.

For unemployed individuals and those in the informal sector, the minimum monthly contribution to SHIF is now Ksh. 300, reduced from the previous Ksh. 500. It’s important to note that there are some exemptions to mandatory contributions, such as for children under 18 and adults over 65 who are already covered by government programs.

All beneficiaries of the previous National Health Insurance Fund (NHIF) and new members seeking comprehensive national health coverage must register for the new SHIF.

Hospital, NHIF rates

SHIF offers inpatient and outpatient services in accredited hospitals. The principal member and dependents must have registered for NHIF membership and selected outpatient facilities for each of the family members before accessing the services.

SHIF Monthly Contribution Charges

Monthly Contribution Rates for the Self-Employed and Unemployed

Those in the informal sector, self-employed individuals, retirees, and voluntary participants will contribute a minimum of Ksh. 300 per month or Ksh. 3,600 per year to the Social Health Insurance Fund (SHIF). However, the final premium may be adjusted based on your ability to pay. This assessment will be conducted by the government using various tools.

Individuals without employment who are deemed unable to afford the minimum contribution will be covered by the government.

The New SHIF Monthly Contribution Rates for Employees (Effective March 2024)

The following table shows the new SHIF payment rates that employers will deduct from their employees’ salaries at the end of each month. The rates are based on 2.75% of an individual’s gross income. The maximum cap of Ksh. 1,700 for those earning Ksh. 100,000 or above has been scrapped.

The minimum one can pay per month is Ksh. 300 and employees earning below Ksh. 30,000 will see their monthly SHIF deductions reduce by between 5% and 46%.

Employee’s  Monthly Gross Income (Ksh) SHIF Rates Per Month (Ksh)
12,000 – 14,999 330 – 413
15,000 – 19,999 413 – 550
20,000 – 24,999 550 – 688
25,000 – 29,999 688 – 825
30,000 – 34,999 825 – 963
35,000 – 39,999 963 – 1,100
40,000 – 44,999 1,100 – 1,238
45,000 – 49,999 1,238 – 1,375
50,000 – 59,999 1,375 – 1,650
60,000 – 69,999 1,650 – 1,925
70,000 – 79,999 1,925 – 2,200
80,000 – 89,999 2,200 – 2,475
90,000 – 99,999 2,475 – 2,750
100,000 – 150,000 2,750 – 4,125

SHIF Penalties for Late Remittances

If the employer fails to remit the employee’s SHIF contributions by the 9th of every month, the employer will be liable to pay late payment penalties. However, this will not affect SHIF 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 2% of the monthly contribution. For example, 2% of Ksh. 500 comes to Ksh. 10, which should be paid on top of the previous month’s premium.

NHIF penalties

If you are prone to consistent late monthly payments, you will be required to pay Ksh. 1,500 for account reactivation, and wait for two months thereafter before accessing SHIF treatment in chosen health facility.

You can find out how to pay the penalties and monthly charges here: How to pay SHIF Premiums and Penalties, view account status.

Activating SHIF Card after Default (Self-Employed)

If your SHIF card has been inactive for over 12 months due to default, you can reactivate it by paying the SHIF 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.

The Ksh. 1500 will enable you to start afresh and will cover three months. You will however still retain the same membership number though the card will be restricted for two months.

See How to pay SHIF Premiums and Penalties, view account status.

Read also:

  1. How to Choose or Change SHIF Outpatient Facility Online, USSD Code or App
  2. SHIF Branches, Offices Location and Contacts