Kenya: AHL, SHA & NSSF Payroll Update in Effect for 2026

For 2026, Kenya’s three statutory levies remain mandatory. AHL is 1.5% employer + 1.5% employee on gross pay. SHA’s SHIF (replaced NHIF October 2024) is 2.75% employee-only (min KES 300, no cap). From 1 February 2026, NSSF Year 4 rates apply: Tier 1 LEL KES 9,000 and Tier 2 UEL KES 108,000, raising the max combined NSSF to KES 12,960/month.

Effective Date

• AHL & SHA: ongoing
• NSSF Year 4 rates: 1 February 2026 (in effect)

Published

• Affordable Housing Act 2024; Social Health Insurance Act 2023; NSSF Act 2013 (Year 4 phase)

Key Points

• NSSF max monthly contribution rises to KES 12,960 (from KES 8,640).
• SHIF is employee-only at 2.75% (min KES 300, no cap).
• AHL is 3% total (1.5% + 1.5%), no cap, declared via iTax Form P10 Sheet M.
• All three levies due by the 9th of the following month.
• Tier 2 NSSF may be contracted out to approved occupational pension schemes.
• Penalties: AHL 3%/month; NSSF 5% + 1% monthly interest.

Payroll action

• Apply AHL at 1.5% + 1.5% on gross; declare via iTax Form P10 Sheet M.
• Apply SHIF at 2.75% of gross (min KES 300) as employee-only deduction.
• Update NSSF from February 2026 to new LEL/UEL thresholds.
• Cap NSSF at KES 6,480 each (employer + employee) per month.
• Remit AHL, SHIF, and NSSF by the 9th of the following month.

Kenya Revenue Authority