How to Register Your Employees for NSSF and SHA in Kenya

Why NSSF and SHA Registration Matters for Kenyan Employers

As a Kenyan employer, registering your employees for the National Social Security Fund (NSSF) and Social Health Authority (SHA) is not optional—it is a legal requirement under the Employment Act and the Social Health Insurance Act 2023. Failure to comply attracts penalties from the Ministry of Labour and SHA. Both schemes protect your workforce and ensure your business meets statutory obligations in 2026.

NSSF Employee Registration: Step-by-Step Process

The NSSF operates two tiers. Tier 1 (mandatory) covers pensionable earnings up to KSh 9,000 monthly. Tier 2 (voluntary for contracting-out) applies to earnings between KSh 9,001 and KSh 108,000, the upper limit effective from 1 February 2026. No contributions are deducted on earnings above KSh 108,000.

Access the NSSF Portal

• Visit the official NSSF online portal at www.nssf.or.ke
• Register your organisation if not already registered, using your KRA PIN (from itax.kra.go.ke)
• Create employer login credentials with a valid email and password

Register Individual Employees

• Input each employee's full name, ID number, and date of birth
• Specify gross monthly salary (NSSF calculates 6% employee contribution + 6% employer contribution)
• Designate Tier 1 and Tier 2 contributor status
• Submit and receive an NSSF membership number for each employee

Monthly contributions are deducted via payroll and remitted by the 9th of the following month. Use M-Pesa or bank transfer to NSSF's designated accounts. Our NSSF registration experts can guide payroll integration if needed. Try our NSSF contribution calculator to estimate deductions.

SHA Employee Registration: The New Health Scheme

The Social Health Authority replaced the National Hospital Insurance Fund (NHIF) in October 2024. All employers with employees must register them for SHIF (Social Health Insurance Fund) in 2026. Unlike the old NHIF, SHIF is a percentage-based deduction with no upper income cap.

Steps to Register via the SHA Platform

• Access www.sha.go.ke or use the SHA mobile app
• Register your organisation using your KRA PIN and business registration details
• Link employee details: names, ID numbers, and monthly gross salary
• SHIF contribution is 2.75% of gross salary, deducted from the employee only (minimum KSh 300 per month)
• Confirm registration and receive employer and employee certificates

Premium Payment and Compliance

SHIF premiums are remitted monthly by the 9th of the following month via the SHA portal. Unlike the old NHIF bands that capped at KSh 1,700, SHIF has no upper limit—it scales with salary. Payment can be made via M-Pesa, bank transfer, or online via SHA's official channels. Check www.sha.go.ke for coverage tiers, as they may adjust during the year.

Key Compliance Tips for 2026

• Update payroll systems now: The NSSF upper limit rose to KSh 108,000 from 1 February 2026. Many employers still use the old KSh 72,000 ceiling, which underdeducts and underremits.
• Know the 9th: Both NSSF and SHIF are due by the 9th of the following month. Late payment attracts penalties of 5% per month for NSSF and 2% per month for SHIF.
• Maintain updated records: Any salary changes must be reported immediately to both NSSF and SHA
• Keep proof of remittance: Retain M-Pesa receipts and bank statements for audit purposes
• Register new employees within 30 days of joining, as mandated by law

Confused about timelines or documentation? SHA registration experts and verified Kenyan compliance consultants on Kaziiko can handle the process end-to-end, ensuring your business stays compliant and your employees protected. You can also use our SHIF deduction calculator to forecast monthly health contributions.

Frequently Asked Questions

What is the difference between Tier 1 and Tier 2?

Tier 1 covers the first KSh 9,000 of pensionable earnings (mandatory for all). Tier 2 covers earnings from KSh 9,001 up to KSh 108,000. Both are subject to 6% employee and 6% employer contributions. No contributions are due on earnings above KSh 108,000.

Do employers pay SHIF, or only employees?

SHIF is deducted from the employee's salary at 2.75% of gross (minimum KSh 300). The employer does not contribute a matching amount to SHIF; the employer's role is to deduct and remit on time by the 9th of the following month.

What happens if I remit NSSF or SHIF late?

Late remittance attracts automatic penalties: 5% of the NSSF amount due for each month or part of a month it is late, plus 1% monthly interest. SHIF late payment attracts 2% per month. Missing the 9th-of-the-month deadline by even a few days costs money, so set remittance as a payroll priority.

Where do I remit contributions?

NSSF contributions are remitted via bank transfer to NSSF's designated accounts or via M-Pesa to NSSF. SHIF contributions are remitted via the SHA portal at www.sha.go.ke. PAYE is remitted via KRA iTax. Check the official portals for exact account details and payment methods specific to your region.