Kenya Payslip 2025: SHA Has Replaced NHIF — Here's What Changed

I want to start with something direct: most Kenya payslip guides you'll find online are outdated. They still reference NHIF rates from 2022. Some have been updated to the 2023 rates. But since October 2024, Kenya has had an entirely new health deduction called SHA — the Social Health Insurance Fund, administered by the Social Health Authority (SHA) — and the rate structure is fundamentally different from NHIF.

Here is a complete breakdown of every statutory deduction on a Kenyan payslip in 2025, with a worked example at the end.

The five statutory deductions on a Kenyan payslip

1. PAYE (Pay As You Earn)

PAYE is Kenya's income tax, collected by the Kenya Revenue Authority (KRA). The 2025 bands are:

Every employee gets a personal relief of KSh 2,400 per month (KSh 28,800 per year), which is deducted from the calculated PAYE. Additionally, NSSF, SHA, and AHL contributions are deductible from taxable income before PAYE is calculated.

2. SHA — Social Health Authority (replaced NHIF in October 2024)

SHA is calculated as 2.75% of gross salary, with a minimum deduction of KSh 300 per month. There is no upper cap — unlike the old NHIF which had fixed amounts per salary band. This means high earners pay significantly more than under NHIF.

Example: An employee earning KSh 80,000 gross pays KSh 80,000 × 2.75% = KSh 2,200 in SHA. Under old NHIF at that salary level, they paid approximately KSh 1,700.

3. NSSF (National Social Security Fund)

NSSF contributions changed significantly effective February 2025 under the new NSSF Act. The new contribution structure is:

• Tier I: 6% on earnings up to KSh 8,000 (max KSh 480)
• Tier II: 6% on earnings between KSh 8,001 and KSh 72,000 (max KSh 3,840)
• Maximum employee NSSF deduction: KSh 4,320/month

The employer contributes an equal amount. NSSF contributions are deductible from taxable income for PAYE purposes.

4. AHL — Affordable Housing Levy (introduced March 2024)

The Affordable Housing Levy is a relatively new deduction — many payslips from early 2024 may still be missing it. The rate is 1.5% of gross salary for the employee, with an equal 1.5% employer contribution.

There is no cap or floor on AHL. It applies to the full gross salary. AHL is also deductible from taxable income for PAYE purposes.

5. NITA — National Industrial Training Authority

A flat KSh 50 per month per employee. Small, but it should be on every payslip as a separate line item.

Worked example: KSh 80,000 gross salary

What should my Kenya payslip look like?

A proper 2025 Kenya payslip should show all five deductions listed above: PAYE, NSSF, SHA (not NHIF), AHL, and NITA. If yours shows NHIF, your employer's payroll system has not been updated. This is not a minor labelling issue — the SHA calculation method (percentage of gross) is fundamentally different from the old NHIF flat-rate bands, so using outdated labels likely means incorrect amounts too.

If you need to generate a correctly formatted Kenya payslip, GenStub's payslip generator uses current 2025 rates including SHA at 2.75%, NSSF at the new Tier I/II structure, AHL at 1.5%, and the correct PAYE bands with personal relief applied.