Regulatory Update

From NHIF to SHIF: What Changed

The shift to the Social Health Insurance Fund — new rates, who pays, and how it shows up on payroll.

Mugo K Tax Advisory Team 2026-02-02 4 min read

The Social Health Insurance Fund (SHIF) replaced NHIF as the vehicle for statutory health contributions. For payroll teams, the practical change is in the contribution basis and the remittance process.

Key insights

SHIF contributions are calculated as a percentage of gross pay rather than a fixed banded amount.
Registration and member records migrated from NHIF, but employers should confirm every employee's SHIF status individually.
Contribution certificates and compliance documents now reference SHIF, which some third parties (insurers, lenders) may still expect in the old NHIF format during the transition.

Compliance tips

Update payroll templates and letterheads that still reference NHIF.
Confirm each employee's SHIF number is correctly captured before the first affected payroll run.
Keep old NHIF contribution records — they remain relevant for historical compliance checks.

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