SOCIAL HEALTH INSURANCE FUND (SHIF):
Last reviewed – 26 February 2025
The Social Health Insurance Act, 2024 (SHIA) replaces the National Hospital Insurance Fund (NHIF) with a universal health insurance system for all Kenyan residents. It introduces mandatory contributions, covers vulnerable populations, and streamlines healthcare benefits, tariffs, and claims management.
Key Features of SHIF
- Universal Registration: All Kenyan residents must register.
- Employer Contributions: Employers must deduct 2.75% of gross salary/wages and remit it to the Social Health Authority (SHA) by the 9th of the following month.
- Dispute Resolution: The Social Health Insurance Tribunal provides alternative dispute resolution mechanisms.
- Transition from NHIF: The Social Health Insurance (Amendment) Regulations, 2024 outline timelines and provisions for specialized healthcare services.
- Tax Deductibility: The Tax Laws (Amendment) Act, 2024 allows SHIF contributions as deductible expenses for tax purposes.
Effective Date
- Contributions and access to healthcare services began on 1 October 2024
About The Author
Maina Susan
Tax & Finance Writer
I’m a Tax & Finance Writer at Quartet Solutions, simplifying tax regulations and financial concepts to help businesses stay compliant.
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