THE SOCIAL HEALTH INSURANCE ACT of 2023 (SHIA) is AN ACT of Parliament that was signed into law by the President on 19th October 2023.

This will establish the framework for the management of social health insurance; provide for the establishment of the Social Health Authority; give effect to Article 43(1)(a) of the Constitution; and for connected purposes.

Effective Date

The ACT takes effect from 22nd November 2023 following the Kenya Gazette Supplement No.223 under Legal notice no: 194 issued on the 21st November 2023 by the Cabinet Secretary for Health. This repeals The National Health Insurance Fund commonly known as NHIF.

Eligibility and Contribution

Section 50 of the SHI Act gives the CS the power to prescribe the amount and rates of contributions payable. The CS is yet to prescribe the contribution rates.


NOTE: Based on public pronouncements, for those in salaried employment there are indications that: -


  • Contributions will be made by employees only and NOT employers.
  • A contributor shall pay a standard contribution at a rate of 2.75% of the gross monthly income BUT subject to a minimum of Kshs 300 and a maximum of Kshs 5,000 per month.

CPA Nimrod Kurgat 

Partner , Tax , Audit & IT

CPA Virginia Kamau

Tax Team Leader

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