SHIF, NSSF and the housing levy: running compliant payroll in Kenya
Kenya's payroll landscape has changed more in the last few years than in the previous two decades. NHIF became SHIF, NSSF contributions stepped up sharply, and a housing levy arrived. Here's what a compliant payslip looks like now.
The four deductions on every Kenyan payslip
| Obligation | Rate | Who pays |
|---|---|---|
| PAYE | Graduated bands, 10%-35% | Employee |
| SHIF (Social Health Insurance Fund) | 2.75% of gross salary | Employee |
| NSSF (pension) | 6% + 6%, up to tiered limits | Employee + employer match |
| Affordable Housing Levy | 1.5% + 1.5% of gross | Employee + employer |
Never miss a deadline: get every Kenya payroll due date (PAYE, NSSF, SHIF, Housing Levy, NITA, HELB) in your work calendar, with reminders.
Get the 2026 calendar →Three things that trip teams up
- NSSF limits step up. The NSSF Act 2013 phases in higher pensionable-earnings limits over several years, so the number you used last year is probably wrong this year.
- SHIF is on gross. Unlike the old NHIF bands, SHIF is a straight percentage of gross pay, with a minimum contribution, and allowances count.
- One deadline to rule them all. PAYE, SHIF, NSSF and the housing levy are all due by the 9th of the following month. One late remittance means penalties on each.
Kenyan payroll isn't hard because the maths is complex. It's hard because the rules keep moving and the penalties are automatic.
Reliefs your employees are entitled to
Compliance cuts both ways: deduct too much and you're quietly underpaying your people. Make sure your engine applies personal relief, and the deductibility rules for SHIF, NSSF and housing levy contributions that reduce taxable income.
Running Nigeria and Kenya from one platform
If you operate in both countries, the real cost is not either country's rules, it's running two different processes. XceedPay keeps both statutory engines native: one payroll run, each employee computed under their own country's current rules, with remittance schedules for KRA, SHA, NSSF and their Nigerian counterparts generated automatically.
See how Xceed365HR handles this for you
Your payroll, your compliance, your people: one platform, one free demo.
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