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SHIF, NSSF and the Housing Levy explained (2026)

Updated 1 October 2026 · 6 min read

Three deductions come off every Kenyan payslip before PAYE: SHIF, NSSF and the Affordable Housing Levy. Here's what each one is, how much it costs and what you get for it.

At a glance: KSh 80,000 gross salary

All three are taken off your pay before PAYE is worked out, so they also lower your tax. See your own figures with the salary calculator.

SHIF: Social Health Insurance Fund

• Rate: 2.75% of gross pay, with a minimum of KSh 300 a month. There is no upper cap.
• Who runs it: the Social Health Authority (SHA), which replaced NHIF.
• What it covers: SHA runs three funds. The Primary Healthcare Fund covers outpatient care, maternity and screening. SHIF covers hospital stays and surgery. The Emergency, Chronic and Critical Illness Fund covers emergencies and long-term conditions.
• Self-employed? You pay 2.75% of household income, assessed through SHA's means test.
• Register or check your status: dial *147#, use the SHA portal, or visit a Huduma Centre.

NSSF: National Social Security Fund

• Rate from February 2026: 6% of pay up to KSh 108,000, so at most KSh 6,480 a month.
• Two tiers: Tier I is 6% of the first KSh 9,000 (KSh 540). Tier II is 6% of pay between KSh 9,000 and 108,000 (up to KSh 5,940).
• Your employer matches it, so up to KSh 12,960 a month goes into your retirement savings.
• What you get back: NSSF is savings in your name. It pays out at retirement, and in cases such as invalidity, emigration, or to your family if you die.

Affordable Housing Levy

• Rate: 1.5% of gross pay. Your employer pays another 1.5%. Self-employed people pay 1.5% of gross income.
• What it funds: the government's affordable housing programme and related infrastructure.
• Tax: since December 2024 the levy is deducted from your taxable pay (this replaced the old 15% housing relief).
• Can you get it back? Unlike NSSF, it isn't savings in your name. Think of it as a tax.

Frequently asked questions

Why did my take-home pay drop in February 2026? NSSF moved to its fourth-year rates, raising the upper limit to KSh 108,000. If you earn above KSh 72,000, your NSSF went up.

Can I reduce these deductions? No, they are compulsory. But pension contributions (up to KSh 30,000 a month, including NSSF) lower your PAYE.

What should I do with what's left? Even a little saved each month adds up. Compare money market funds or see what a T-bill would earn.

For education only, not tax advice. Rates as at October 2026. Check SHA, NSSF and KRA for changes.