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Faith Musyoka, Adv. April 28, 2026Health Insurance

SHIF vs. NHIF: What Machakos Workers Must Know

Explaining the mandatory deductions for the Social Health Insurance Fund and your rights to medical care

Kenyan health insurance card

As of 1 July 2025, the National Hospital Insurance Fund (NHIF) was formally replaced by the Social Health Insurance Fund (SHIF) under the Social Health Insurance Act, 2023. Many workers in Machakos are still confused about the new contribution rates, what benefits they are entitled to, and whether their employers are complying. This guide explains the key differences, the mandatory monthly deductions, and how to access healthcare under the new system.

Key change: SHIF contributions are now calculated as a fixed percentage of gross salary (2.75%) instead of NHIF’s tiered rates. Employers deduct from employees monthly.

Contribution Rates Compared

  • NHIF (old): Tiered from KES 150 – 1,700 per month based on salary band.
  • SHIF (new): 2.75% of gross monthly salary. Example: Salary KES 50,000 → contribution KES 1,375. Salary KES 100,000 → KES 2,750. No upper cap.
  • Employer contribution: Employers also contribute a separate amount (currently 0.75% of payroll) to a Workplace Wellness Fund (managed by SHIF).

Benefits – What Does SHIF Cover?

SHIF provides a broader benefits package than NHIF, including:

  • Inpatient and outpatient services at accredited public and private hospitals.
  • Maternity and newborn care.
  • Emergency medical evacuation (e.g., ambulance).
  • Chronic disease management (diabetes, hypertension, cancer).
  • Dental and optical care (limited).
  • Mental health services (up to 6 sessions per year).
To access SHIF benefits, you must register for a Social Health Authority (SHA) card through the e‑Citizen portal. The old NHIF card is no longer valid.

Rights and Obligations for Employees

  • Mandatory deduction: Your employer must deduct SHIF from your salary and remit by the 9th of the following month. Failure to remit can result in fines for the employer – but your benefits should not be denied if you have proof of deductions.
  • Dependants covered: Spouse and children under 18 (or up to 25 if in full‑time education) are covered under your contributions.
  • Private insurance optional: You can still have private medical cover – SHIF acts as a basic package.

What If Your Employer Is Not Deducting?

Report to the SHIF Authority (contact centre 0800 720 601) or file a complaint at the Machakos Labour Office. Employers can face penalties of up to 10% of unpaid contributions per month.

Musyoka & Mutinda can advise employees whose SHIF rights are violated, and also help employers register and comply with the new deductions.