Kenya | Social Health Authority Notice to All Employers

Kenya | Social Health Authority Notice to All Employers

The Social Health Authority (SHA) has issued a notice to clarify some FAQs on the Social Health Insurance Fund (SHIF) statutory contribution.

What is meant by gross salary or wage?

Employers are required to deduct a SHIF contribution of 2.75% from the gross salary or wage for households whose income is derived from salaried employment. Gross salary or wage includes basic salary and allowances paid to an employee on a regular (monthly) basis as a salary or wage.

Does the SHIF contribution quality for insurance tax relief?

The SHA is of the view that contributors to the Social Health Insurance Fund (SHIF) should qualify for insurance tax relief but has deferred to the Kenya Revenue Authority (KRA) for confirmation. As of the time of this publication, the KRA has not yet confirmed whether SHIF contributions qualify for insurance tax relief.

Is SHIF an employee and employer contribution?

No, employers are not required to match the employee's contribution. SHIF is an employee-only contribution.

Please see attached.


    • Related Articles

    • Kenya | Social Health Insurance (SHIF) 2024 Guide

      This guide provides a comprehensive breakdown of the legislation governing the Social Health Insurance Fund (SHIF), offering clear insights to help you navigate the amendments with ease.

    • Kenya Product User Guide

      To aid our users in the understanding and application of compliance in Kenya, PaySpace has released an external Product User Guide. This is a "How to guide" to follow during company implementations, company maintenance, and for general support ...

    • Kenya Payroll Tax Guide 2025

      The Kenya Payroll Tax Guide is an easy-to-understand summary of statutory contributions associated with payroll for the 2025 tax year.

    • Kenya Payroll Tax Guide 2024

      The Kenya Payroll Tax Guide is an easy-to-understand summary of statutory contributions associated with payroll for the 2024 tax year.

    • Kenya | Public Notice: Insurance Relief on SHIF Contributions

      The Kenya Revenue Authority (KRA) has issued a Public Notice clarifying that contributions to the Social Health Insurance Fund (SHIF) do not qualify for insurance relief. Currently, the Income Tax Act does not provide for tax relief on SHIF ...