Asked about Kenyan social contributions for self-employed individuals -- SHIF (formerly NHIF) health insurance and NSSF pension.
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General reference only
This Guide is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for your personal facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.
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SHIF contribution rate
2.75% of declared incomeSocial Health Insurance Act 2023
SHIF minimum monthly contribution
KES 300/monthSocial Health Insurance Act 2023
SHIF maximum monthly contribution
No capSocial Health Insurance Act 2023
SHIF computation formula
max(declared_monthly_income × 2.75%, KES 300)Social Health Insurance Act 2023
SHIF effective date (replacing NHIF)
October 2024Social Health Insurance Act 2023
SHIF self-employed contribution basis
2.75% of declared household incomeSocial Health Insurance Act 2023
SHIF registration obligation
Mandatory for all residentsSocial Health Insurance Act 2023
SHIF late payment penalty
2.5% per monthSocial Health Insurance Act 2023
Old NHIF self-employed flat rate
KES 500 flatNational Hospital Insurance Fund Act (Cap. 255)
Old NHIF contribution range (brackets)
KES 150–1,700 (fixed brackets)National Hospital Insurance Fund Act (Cap. 255)
NSSF self-employed total contribution rate
12% of declared pensionable earnings (both employee and employer portions)NSSF Act 2013
NSSF Tier I Lower Earnings Limit (ceiling)
KES 8,000NSSF Act 2013
NSSF Tier II Upper Earnings Limit (ceiling)
KES 72,000NSSF Act 2013
NSSF maximum monthly contribution (self-employed, Tier I + II)
KES 8,640NSSF Act 2013
NSSF minimum monthly contribution (Tier I only)
KES 960NSSF Act 2013
NSSF Tier I employee rate
6% (employee) + 6% (employer) = 12% total on min(declared_income, KES 8,000)NSSF Act 2013
NSSF Tier II rate
6% (employee) + 6% (employer) = 12% total on earnings between KES 8,000 and KES 72,000NSSF Act 2013
NSSF Tier I computation formula (self-employed)
min(declared_income, KES 8,000) × 6% × 2NSSF Act 2013
NSSF Tier II computation formula (self-employed)
max(0, min(declared_income, KES 72,000) − KES 8,000) × 6% × 2NSSF Act 2013
NSSF registration status for self-employed
VoluntaryNSSF Act 2013
NSSF effective date of current rates
February 2025NSSF Act 2013
NSSF late payment penalty
5% per monthNSSF Act 2013
SHIF payment due date
9th of the following month (monthly)Social Health Insurance Act 2023
NSSF payment due date
9th of the following month (monthly)NSSF Act 2013
SHIF insurance relief rate
15% of premiums paidIncome Tax Act (Cap. 470)
SHIF insurance relief annual cap
KES 60,000/yearIncome Tax Act (Cap. 470)
NSSF pension relief monthly deduction cap
KES 30,000/monthIncome Tax Act (Cap. 470)
Reporting platform for SHIF and NSSF deductions
iTax annual returnIncome Tax Act (Cap. 470)
Quick reference table
| Field | Value |
|---|---|
| Country | Kenya |
| Health authority | SHA (Social Health Authority, replacing NHIF) |
| Pension authority | NSSF (National Social Security Fund) |
| Primary legislation | Social Health Insurance Act 2023 (SHIF); NSSF Act 2013 |
| SHIF rate | 2.75% of declared income |
| SHIF minimum | KES 300/month |
| SHIF maximum | No cap |
| NSSF self-employed | 12% of declared pensionable earnings (both portions) |
| NSSF Tier I ceiling | KES 8,000 (Lower Earnings Limit) |
| NSSF Tier II ceiling | KES 72,000 (Upper Earnings Limit) |
| NSSF maximum monthly | KES 8,640 |
| NSSF for self-employed | Voluntary |
| Payment deadline | 9th of following month |
| Currency | KES only |
| Contributor | Open Accountants |
| Validated by | Pending -- requires validation by Kenyan CPA |
| Validation date | Pending |
SHIF Old vs New comparison (Social Health Insurance Act 2023)
| Item | Old (NHIF) | New (SHIF, from Oct 2024) |
|---|---|---|
| Rate | Fixed brackets (KES 150-1,700) | 2.75% of income |
| Self-employed | Flat KES 500 | 2.75% of declared household income |
| Minimum | KES 150 | KES 300 |
| Maximum | KES 1,700 | No cap |
Self-employed NSSF table (NSSF Act 2013)
| Item | Detail |
|---|---|
| Registration | Voluntary |
| Self-employed pays | Both employee and employer portions (total 12%) |
| Minimum (Tier I only) | KES 960 |
| Maximum (Tier I + II) | KES 8,640 |
Computation examples table
| Declared income | SHIF | NSSF Tier I | NSSF Tier II | Total NSSF | Grand total |
|---|---|---|---|---|---|
| KES 5,000 | KES 300 (min) | KES 600 | KES 0 | KES 600 | KES 900 |
| KES 50,000 | KES 1,375 | KES 960 | KES 5,040 | KES 6,000 | KES 7,375 |
| KES 200,000 | KES 5,500 | KES 960 | KES 7,680 | KES 8,640 | KES 14,140 |
Payment schedule table
| Contribution | Due date | Frequency |
|---|---|---|
| SHIF | 9th of following month | Monthly |
| NSSF | 9th of following month | Monthly |
Payment via M-Pesa, bank deposit, or online portals.
Tax interaction table
| Question | Answer |
|---|---|
| SHIF deductible? | YES -- insurance relief (15% of premiums, capped KES 60,000/year) |
| NSSF deductible? | YES -- pension relief up to KES 30,000/month |
| Where reported? | iTax annual return |
Penalties table
| SHIF | NSSF | |
|---|---|---|
| Late payment | 2.5%/month | 5%/month |
| Non-registration | Denial of healthcare | Loss of benefits |
From October 2024, all NHIF members transitioned to SHIF. May involve re-registration with SHA.
SHIF for self-employed in informal sector is based on "household income." Definition of how spousal income is factored is still being clarified by SHA. Flag for reviewer.
Situation: Jua kali worker, no fixed income. Resolution: Declare average estimate. Minimum KES 300 SHIF applies. Flag for reviewer.
Situation: Employed (employer deducts SHIF/NSSF) and self-employed. Resolution: Employer handles employment contributions. Additional SHIF may be due on self-employed income. NSSF may be maxed through employment.
Situation: Income KES 200,000. Resolution: NSSF capped at KES 8,640. SHIF = KES 5,500 (no cap).
Situation: Foreign national, self-employed in Kenya. Resolution: SHIF applies to all residents. NSSF voluntary. Flag for reviewer.
Situation: Declared KES 5,000. Resolution: SHIF = KES 300 (minimum). NSSF voluntary.
When a situation requires reviewer judgement:
REVIEWER FLAG
Tier: T2
Client: [name]
Situation: [description]
Issue: [what is ambiguous]
Options: [possible treatments]
Recommended: [most likely correct treatment and why]
Action Required: Qualified accountant must confirm before advising client.
When a situation is outside skill scope:
ESCALATION REQUIRED
Tier: T3
Client: [name]
Situation: [description]
Issue: [outside skill scope]
Action Required: Do not advise. Refer to qualified accountant. Document gap.
Input: Declared KES 50,000. SHIF + NSSF. 2025. Expected output: SHIF KES 1,375. NSSF KES 6,000. Total KES 7,375.
Input: Declared KES 5,000. SHIF only. Expected output: SHIF KES 300 (minimum).
Input: Declared KES 200,000. Both. Expected output: SHIF KES 5,500. NSSF KES 8,640. Total KES 14,140.
Input: Employment KES 80,000, self-employed KES 40,000. Expected output: Employer handles employment. Additional SHIF KES 1,100 on self-employed. NSSF likely maxed.
Input: Estimated KES 10,000. SHIF only. Expected output: SHIF KES 300 (minimum; 2.75% = KES 275, below minimum).
Input: Declared KES 8,000. NSSF only. Expected output: Tier I only. KES 960.
Input: KES 30,000, voluntary NSSF, no SHIF registration. Expected output: NSSF KES 3,600. Advise to register for SHIF (mandatory).
This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.
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Other Kenya computations in the OpenAccountants Tax Library.
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