NSSF, SHIF, AHL and NITA — statutory contributions
The four mandatory contributions deducted on every payroll in Kenya, plus the current 2026 rates Vendly applies automatically.
Three statutory contributions come off the employee's cash gross every month, plus one that's borne by the employer alone. All are pre-PAYE allowable deductions — they reduce taxable income before the tax bands are applied.
NSSF — pension
The NSSF Act 2013 phases its tier ceilings over five years. The Year 4 rates apply from February 2026:
| Tier | Range (pensionable pay) | Rate | Maximum per side |
|---|---|---|---|
| Tier I | KES 0 — 9,000 | 6% | KES 540 |
| Tier II | KES 9,001 — 108,000 | 6% | KES 5,940 |
| Total | — | — | KES 6,480 |
Both the employee and the employer pay the same amount. Vendly caps Tier II at KES 108,000 of pensionable pay automatically.
SHIF — Social Health Insurance Fund
SHIF replaced NHIF on 1 October 2024 under the Social Health Insurance Act 2023.
- Rate: 2.75% of gross monthly pay.
- Minimum: KES 300/month (applies to very low earners).
- No upper cap.
- Allowable PAYE deduction since 27 December 2024 (Tax Laws Amendment Act 2024).
The old 15% insurance relief that NHIF used to qualify for was repealed for SHIF in the same Tax Laws Amendment Act — only PRIVATE medical / life insurance premiums still get insurance relief.
AHL — Affordable Housing Levy
The Affordable Housing Act 2024 introduced a mandatory levy of 1.5% from each side, no cap, computed on gross monthly salary. The levy is collected by KRA on behalf of the Affordable Housing Board and filed via the KRA AHL portal.
NITA — National Industrial Training Levy
A flat KES 50 per employee per month, paid by the employer only — it's an employer cost, never a payslip deduction.
What the deductions look like on a payslip
| Item | Employee | Employer | Goes to |
|---|---|---|---|
| NSSF Tier I + II | Up to 6,480 | Up to 6,480 | NSSF |
| SHIF (2.75%) | Min 300, no cap | — | SHA |
| Housing Levy (1.5%) | 1.5% of gross | 1.5% of gross | AHL portal |
| NITA | — | Flat 50 | NITA |
Where to see this in Vendly
Process a payroll run
Open Payroll Runs → create a draft for the period → Process. Each PayrollRecord shows the exact NSSF, SHIF, AHL and NITA values that came out.
Payroll RunsFile the monthly returns
Statutory Exports generates the SHA, NSSF byPRO and AHL CSVs from the run's PayrollRecords in the exact column layout each portal expects.
Statutory ExportsKenya law that applies
- National Social Security Fund Act 2013
Tier I + Tier II pension contributions; phased ceilings over five years.
- Social Health Insurance Act 2023
Replaced NHIF with the Social Health Authority and the Social Health Insurance Fund (SHIF) from 1 October 2024.
- Affordable Housing Act 2024
Affordable Housing Levy — 1.5% of gross from both employee and employer.
- Tax Laws (Amendment) Act 2024
Made SHIF and AHL allowable pre-PAYE deductions; repealed the 15% SHIF insurance relief from 27 December 2024.
- KRA Employer's Guide to PAYE
KRA's operational PAYE manual; Appendix 7C carries the car-benefit rate table.