Kenyan payroll changed substantially in the last two years. If your payslip still looks like it did in 2023, something is wrong.
SHIF replaced NHIF
In 2024 the government replaced the National Health Insurance Fund with the Social Health Insurance Fund.
Deduction: 2.75% of gross monthly income
Minimum: KES 300 per month
Remittance deadline: by the 9th of the following month
Late payment penalty: 3% monthly
NSSF Year 4
As of February 2026, the National Social Security Fund commenced its Year 4 implementation phase:
Lower earnings limit: KSh 9,000
Upper earnings limit: KSh 108,000
Combined monthly employer-employee contribution: up to KSh 12,960 for high earners
Worth knowing: the legal foundation for the graduated rates has been the subject of constitutional challenge. The deductions are being enforced, but the position is contested.
The Affordable Housing Levy
Introduced by the Affordable Housing Act 2024: 1.5% of salary.
PAYE
Income tax deducted at source and remitted to the Kenya Revenue Authority.
Why NSSF membership matters beyond retirement
Here is a connection most people miss: being a member of NSSF, a registered pension fund or a gratuity scheme removes your entitlement to service pay under the Employment Act.
That is not a reason to avoid NSSF — the pension is the stronger position — but it explains why service pay rarely arises for formally employed Kenyans.
What to check on your payslip
That SHIF appears at 2.75%, not the old NHIF banded amount
That NSSF reflects the Year 4 limits
That the Housing Levy at 1.5% appears
That PAYE is correctly calculated
Verify remittance separately
A deduction on your payslip does not prove your employer remitted it. Check your NSSF and SHIF records directly — gaps affect your pension and your health cover.
Frequently asked questions
What replaced NHIF?
The Social Health Insurance Fund, requiring a deduction of 2.75% of gross monthly income with a minimum of KES 300, remitted by the 9th of the following month.
What changed with NSSF in 2026?
Year 4 implementation began in February 2026, with a lower earnings limit of KSh 9,000 and an upper limit of KSh 108,000, up to KSh 12,960 combined for high earners.
What is the Affordable Housing Levy?
A deduction of 1.5% of salary introduced by the Affordable Housing Act 2024.
Why does NSSF membership affect service pay?
Because belonging to NSSF, a registered pension fund or a gratuity scheme removes your entitlement to service pay under the Employment Act.
Should I verify my contributions?
Yes. A deduction on your payslip does not prove remittance. Check your NSSF and SHIF records directly, since gaps affect your pension and health cover.