NSSF, SHIF and Housing Levy deductions in Kenya 2026
Three deductions come off a Kenyan payslip before PAYE is worked out: the National Social Security Fund (NSSF), the Social Health Insurance Fund (SHIF) and the Affordable Housing Levy. The employer pays NSSF and the levy on top as well. This guide sets out the employee side in 2026, where each deduction stops rising, and how the three lower the pay that PAYE is applied to.
The three rules side by side
| Deduction | Employee rate | What it applies to | Most the employee pays a month |
|---|---|---|---|
| NSSF | 6% | Pay up to the upper earnings limit of KSh 108,000 | KSh 6,480.00 |
| SHIF | 2.75% | Gross pay, with a minimum of KSh 300 a month | No limit |
| Housing Levy | 1.5% | Gross pay | No limit |
NSSF
The NSSF Act sets contributions in two tiers. Since the Year 4 rates took effect in February 2026 the employee pays 6% of pensionable pay. Tier I is 6% of pay up to the lower earnings limit of KSh 9,000, which is at most KSh 540.00. Tier II is 6% of the pay between KSh 9,000 and the upper earnings limit of KSh 108,000, which is at most KSh 5,940.00. Together the most an employee pays is KSh 6,480.00 a month, and the employer pays the same amount.
Until January 2026 the limits were KSh 8,000 and KSh 72,000. The table shows the split at a few salaries. Pay above KSh 108,000 adds nothing more to NSSF.
| Monthly pay | Tier I | Tier II | Employee NSSF |
|---|---|---|---|
| KSh 9,000 | KSh 540.00 | KSh 0.00 | KSh 540.00 |
| KSh 15,000 | KSh 540.00 | KSh 360.00 | KSh 900.00 |
| KSh 50,000 | KSh 540.00 | KSh 2,460.00 | KSh 3,000.00 |
| KSh 108,000 | KSh 540.00 | KSh 5,940.00 | KSh 6,480.00 |
| KSh 200,000 | KSh 540.00 | KSh 5,940.00 | KSh 6,480.00 |
Tier II can be redirected to an approved private pension scheme with the approval of the Retirement Benefits Authority. The calculators assume the whole contribution goes to NSSF.
SHIF
SHIF replaced the old NHIF contribution. For a salaried employee the Social Health Authority sets it at 2.75% of gross pay, and the employer deducts it and remits it. The minimum is KSh 300 a month, which applies to a salary below about KSh 10,910. There is no ceiling, so the amount keeps rising with pay: it is KSh 8,250.00 at KSh 300,000 a month.
Affordable Housing Levy
The employee pays 1.5% of gross pay to the Affordable Housing Levy, and the employer pays a matching 1.5%. There is no ceiling here either, so at KSh 300,000 a month the employee levy is KSh 4,500.00.
What they add up to
| Monthly pay | NSSF (employee) | SHIF (employee) | Housing Levy (employee) | Total deducted | Share of pay |
|---|---|---|---|---|---|
| KSh 20,000 | KSh 1,200.00 | KSh 550.00 | KSh 300.00 | KSh 2,050.00 | 10.25% |
| KSh 30,000 | KSh 1,800.00 | KSh 825.00 | KSh 450.00 | KSh 3,075.00 | 10.25% |
| KSh 50,000 | KSh 3,000.00 | KSh 1,375.00 | KSh 750.00 | KSh 5,125.00 | 10.25% |
| KSh 100,000 | KSh 6,000.00 | KSh 2,750.00 | KSh 1,500.00 | KSh 10,250.00 | 10.25% |
| KSh 150,000 | KSh 6,480.00 | KSh 4,125.00 | KSh 2,250.00 | KSh 12,855.00 | 8.57% |
| KSh 300,000 | KSh 6,480.00 | KSh 8,250.00 | KSh 4,500.00 | KSh 19,230.00 | 6.41% |
At KSh 20,000 a month the three deductions take 10.25% of pay. NSSF stops growing at KSh 108,000, but SHIF and the levy keep taking 4.25% of every extra shilling, so at KSh 300,000 the total of KSh 19,230.00 is 6.41% of pay.
How the deductions affect PAYE
Under the Tax Laws (Amendment) Act, 2024 the SHIF contribution and the Affordable Housing Levy are deducted from pay before PAYE, and the Kenya Revenue Authority lists both among the allowed deductions. Employee NSSF contributions are treated as a registered pension contribution, which is deductible up to KSh 30,000 a month. The NSSF maximum of KSh 6,480.00 is well inside that. So PAYE is applied to gross pay less all three. See the PAYE bands explained for the next step, and the net pay table for every monthly salary for the result.
Not included: the employer's own shares, insurance premium relief, voluntary pension contributions, overtime and allowances. The NSSF and SHIF figures were read on the NSSF notice and the Social Health Authority page. The housing levy rate and the NSSF deduction before PAYE were read on payroll guides, and the Sources and rates page says which values that applies to.
Work out your own net paySources
- NSSF: notice to employers, Year 4 contribution rates from February 2026
- Social Health Authority: SHIF premium rates
- KRA: PAYE page, deductions allowed before PAYE (Affordable Housing Levy and SHIF)
- Every rate used, with its source and check date: Sources and rates
This calculator is general information only. It uses the official pages listed on the Sources page, and your payslip and personal situation may differ. Rates as at 2 November 2026.