Shocker: NHIF Looks to Deduct 2.75 Percent Monthly From Every Kenyan

MH Reporter

Kenyans may have to dig deeper after the National Housing Insurance Fund (NHIF) proposed a new move to deduct 2.75% of the gross salary of both employed and self-employed Kenyans monthly.

The proposal is contained in website of the NHIF – and is downloadable.

The proposal reads that:

THAT: “A contributor in salaried employment shall pay a standard contribution at a rate of 2.75% of the gross monthly income derived from employment in the preceding month. Contribution by self-employed person.”

THAT  11. (1) “A contributor in self-employment shall pay a special contribution to the Fund at a rate of 2.75% of the declared or assessed gross monthly income of the contributor.”

THAT: (2) “A contributor shall pay three hundred shillings (Ksh300) where the amount in paragraph (1) is less than three hundred shillings (Ksh300).”

The document does not indicate the maximum contribution an individual can make towards NHIF per month.

This means that a person who earns Sh100,000 gross salaries will have to pay Sh2,500 monthly towards NHIF per month.

This means that those who earn Sh200,000 will have to part with Sh5,000 per month.

Currently, Kenyans pay utmost Sh1700 towards NHIF per month.