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SHIF Registration for Employers in Kenya: Complete 2026 Guide

📅 27 May 2026 · ✅ Last verified: 12 October 2026 · 📖 6 min read · Registration & Legal
Black Kenyan employer and employee reviewing a SHIF contribution roster and enrollment folder
Original editorial artwork; no official interface or endorsement depicted.

If you employ staff in Kenya, you've likely heard about SHIF — but you might still be unsure what changed from NHIF, how to register, or what you're actually required to do as an employer. You're not alone. Since the transition in October 2024, many business owners have been navigating this new system with limited guidance.

The good news: SHIF registration is straightforward once you understand the process. Whether you're a startup hiring your first employee or an established business formalising your payroll, this guide walks you through every step — from registering your company with the Social Health Authority (SHA) to remitting contributions and staying compliant.

1. What is SHIF and How is it Different from NHIF?

The Social Health Insurance Fund (SHIF) is Kenya's new mandatory health insurance scheme that replaced the National Hospital Insurance Fund (NHIF) on 01-10-2024. It was established under the Social Health Insurance Act, 2023 and is administered by the Social Health Authority (SHA).

The key differences from NHIF:

  • Percentage-based contributions — Instead of NHIF's flat-rate bands, SHIF uses 2.75% of gross salary, so higher earners contribute more
  • No upper cap — Unlike NSSF which caps at KES 108,000, SHIF applies to all earnings with no maximum
  • Employee-funded only — The 2.75% is deducted from the employee's salary. Employers do not contribute a matching amount
  • Three-fund system — SHA operates three funds: the Primary Healthcare Fund (Level 2-3, government-funded), SHIF (Level 4-6, contribution-funded), and the Emergency, Chronic & Critical Illness Fund (EDCF)

SHA membership provides access to covered benefits through contracted health facilities, subject to the applicable benefit package and referral rules. If you were previously registered with NHIF, check each employee’s current SHA registration and details on the employer portal rather than assuming an NHIF record transferred correctly.

⚠️ Important SHA benefits are delivered through facilities contracted by SHA and remain subject to covered services, eligibility and referral requirements. Confirm an employee’s membership and the facility’s current status through SHA before relying on a particular service.

2. Who Needs to Register

SHIF registration is mandatory for:

  • Every employer in Kenya with one or more employees — regardless of the number of staff
  • Every employee — including full-time, part-time, casual, contract, and temporary workers
  • Self-employed individuals — must register individually and pay through the means-testing process

As an employer, your responsibility is to:

  1. Register your company with the SHA Employer Portal
  2. Register all your employees and their dependants
  3. Deduct 2.75% from each employee's gross salary each month
  4. Remit the total amount to SHA by the 9th of the following month

3. SHIF Contribution Rates 2026

💡 Note SHIF is employee-funded at 2.75% of gross salary (minimum KES 300). The employer must deduct it accurately, remit it to SHA by the 9th of the following month, report it, and keep records. The employer does not make a matching contribution, but is personally liable for missing or inaccurate deductions and remittances; failure can result in a fine of up to KES 2,000,000, imprisonment, or both under the Social Health Insurance Act, 2023.

4. How to Register Your Company as an Employer

Registration is done through the SHA Employer Portal. Here's the step-by-step process:

Step 1: Register Your Company

  1. Visit sha.go.ke and select Register Employer
  2. Enter your company's KRA PIN and business registration number
  3. Provide your company's physical address, postal address, and county
  4. Add authorized contact persons (director, HR, or accountant) with their names, ID numbers, phone numbers, and email addresses
  5. Submit and receive your Employer SHA Number

Step 2: Register Your Employees

  1. Log in to the SHA Employer Portal at employers.sha.go.ke
  2. Navigate to the employee registration section
  3. You can add employees individually or via bulk upload using the Excel template
  4. For each employee, provide:
    • Full name (as on National ID)
    • National ID number or passport number
    • Phone number (active Safaricom, Airtel, or Telkom line)
    • Date of birth
    • Gross monthly salary
    • KRA PIN (if available)
  5. Submit the registration — employees receive a confirmation SMS with their SHA membership number

Step 3: Add Employee Dependants

Each employee can add dependants (spouse and children) through their own Afya Yangu portal or by visiting an SHA centre. As an employer, you can also facilitate this by providing employees with the SHA registration link.

💡 Pro Tip Before registering for SHIF, make sure you already have a KRA PIN for your business. You'll need it for the SHA employer registration. If you're just starting out, you'll also want to register your business first.

5. How to Remit SHIF Contributions

Once your employees are registered, you must deduct and remit contributions monthly.

Payment via SHA Employer Portal

  1. Log in to employers.sha.go.ke
  2. Upload your monthly payroll template with employee contributions calculated
  3. Generate a payment invoice for the total amount due
  4. Pay via:
    • M-Pesa PayBill — Use the SHA PayBill number displayed on the portal, with your employer number as the account
    • Bank transfer — Direct deposit to SHA's designated bank account
    • Direct debit — Set up automatic monthly deductions from your business account
  5. Save the payment receipt as proof of compliance

Deadline

Contributions must be remitted by the 9th of the following month. For example, May 2026 contributions are due by 09-06-2026. Late remittance attracts a 2% penalty on unpaid amounts.

⚠️ Important It is a criminal offence to deduct SHIF from employee salaries and fail to remit to SHA. This is treated as misappropriation of funds. Ensure every deduction is remitted on time — keep payment receipts as part of your compliance records.

6. Penalties for Non-Compliance

SHA enforces compliance strictly. Here are the penalties you face as an employer:

Offence Penalty
Late remittance of contributions 2% penalty on unpaid amount
Failure to register employees Registration is mandatory. Consequences depend on the specific breach; late payment, unpaid contributions and criminal offences have separate rules.
Deducting but not remitting contributions Fine up to KES 2,000,000 or imprisonment up to 3 years, or both
Knowingly supplying materially false information to obtain a benefit for yourself or another person On conviction, a fine up to KES 2,000,000 or imprisonment up to 3 years, or both, under section 48(1)(c) of the Social Health Insurance Act.

Beyond legal penalties, non-compliance can affect your business in other ways. SHA compliance certificates are increasingly required for government tenders, business permits, and some bank financing. Staying compliant protects your business on multiple fronts.

7. Self-Employed Individuals

If you're self-employed or running a business without employees, you must still register with SHA individually. The process differs slightly:

  1. Complete a Means Test — Dial *147# or visit afyayangu.go.ke. Answer questions about your household income to determine your contribution level
  2. Receive your contribution amount — Based on the means test, SHA calculates your monthly contribution (minimum KES 300)
  3. Pay monthly — Via M-Pesa PayBill, Airtel Money, or bank transfer
  4. Add dependants — Register your spouse and children through the Afya Yangu portal

Membership may cover you and eligible registered dependants for benefits available under the applicable package at SHA-contracted facilities. Confirm the covered service, eligibility, referral requirements and facility status with SHA.

8. Frequently Asked Questions

What is the SHIF contribution rate for employees in 2026?

The SHIF rate is 2.75% of gross salary, with a minimum of KES 300 per month. There is no upper cap — the percentage applies to all earnings. An employee earning KES 200,000 contributes KES 5,500 per month.

Do employers contribute to SHIF?

No. SHIF is employee-funded at 2.75% of gross salary. However, employers have a legal obligation to deduct it, remit it to SHA by the 9th of the following month, and keep accurate records. Failure to do so makes the employer personally liable for unpaid amounts plus penalties.

How is SHIF different from NSSF?

SHIF is a health insurance scheme covering medical expenses. NSSF is a retirement savings scheme. SHIF is 2.75% of salary (employee only, no cap). NSSF Phase 4 has a Tier I + Tier II structure with both employer and employee contributing up to KES 6,480 each (capped at KES 12,960 total). Both are mandatory for employers.

What is the penalty for not registering employees for SHIF?

Failure to register employees or remit contributions can result in a 2% late penalty on unpaid amounts, fines up to KES 2 million, and imprisonment for up to 3 years. Deducting but not remitting is treated as criminal misappropriation.

How do I check if an employee is already registered with SHA?

You can verify an employee's SHA status on the employer portal using their National ID number. Employees can also check their own status by dialling *147# or logging into afyayangu.go.ke.

Related Guides

⚠️ Disclaimer: This guide is for informational purposes and is accurate as of 12 October 2026. SHIF rates and procedures are based on the Social Health Insurance Act, 2023 and SHA guidelines. The Social Health Insurance regime has been subject to legal challenges and may change. Always verify current requirements with the SHA Official Portal or consult your HR or legal advisor.

Sources and update record

Updated 26 October 2026: Scoped SHIF benefits to covered services at contracted facilities and current referral rules.