Navigate Kenya's statutory social security returns, ensure correct calculations of the new SHIF rates, and manage monthly levy payments error-free.
Statutory Remittances Handled Accurately Every Month
Kenyan statutory payroll contributions have undergone major structural overhauls. With the transition from NHIF to the Social Health Insurance Fund (SHIF) at a flat 2.75% rate, the phased increases under the NSSF Act 2013, and the implementation of the Affordable Housing Levy (AHL), companies face constant changes in payroll accounting. Deductions must be calculated correctly, or employers risk severe interest charges, legal liabilities, and staff dissatisfaction.
Numeriq Solutions specializes in statutory remittance management. We handle the entire cycle of calculation, portal upload, and receipt verification for NSSF, SHIF, and the Housing Levy. Our tax specialists ensure that statutory rates are updated in your payroll software, employee reliefs are applied, and contributions are uploaded to the correct government portals (e.g. eCitizen and the KRA iTax platform) before deadline dates.
What Our Statutory Remittance Service Includes
We provide full-service administration of all major statutory employer obligations in Kenya:
NSSF Return Uploads: Calculation of Tier I and Tier II pension contributions (capped at KES 2,160 for employees and KES 2,160 for employers) and filing monthly returns on the NSSF portal.
SHIF Compliance Management: Transitioning employee records from NHIF to SHIF, calculating the 2.75% gross salary deduction, filing schedules, and generating payment receipts.
Affordable Housing Levy Filing: Computing the 1.5% employee deduction and the matching 1.5% employer contribution, and filing these together with monthly PAYE returns on the KRA iTax portal.
Statutory Account Registration: Assisting new companies in registering their employer accounts with NSSF, SHIF, and linking them to their KRA profiles.
Insurance & Tax Relief Applications: Ensuring employees receive their eligible 15% insurance relief on SHIF contributions, directly reducing their personal income tax (PAYE) burden.
Unified Payment Slip Generation: Creating singular payment receipts on eCitizen or KRA iTax, allowing you to pay all monthly statutory dues in one go.
Employee Contribution Audits: Conducting historic reviews to verify that previous deductions were remitted correctly to employees' individual social security accounts.
Who This Service Is For
This service is crucial for any business in Kenya with a salaried team:
Growing Kenyan Businesses: SMEs that want to outsource statutory computations to prevent payroll errors and administrative overhead.
Human Resource Managers: Professionals who need to ensure employee welfare accounts (NSSF pension, SHIF medical cover) are funded correctly on time.
Foreign Investors & Subsidiaries: Global organizations establishing local operations in Kenya that need to configure their benefits systems in line with Kenyan labor laws.
Companies Prepping for Audits: Businesses that want to verify their statutory ledgers are clean and fully reconciled with government receipts.
How Our Process Works
We manage your statutory compliance cycle side-by-side with your monthly payroll processing:
Calculation: During monthly payroll calculations, our system isolates and computes NSSF, SHIF, and Housing Levy amounts for each staff member.
Schedule Compilation: We compile the statutory return files (excel templates and XML structures) required by the NSSF portal, SHIF portal, and KRA iTax.
Portal Upload: We upload the templates to the respective portals, verify that there are no processing errors, and generate the official Payment Slips (PRNs).
Disbursement & Receipting: You make the payment using the generated PRNs (via bank transfer or M-Pesa), and we download the official statutory receipts.
Employee Sync: We log the contributions to update individual employee portals, ensuring employees can see their pension and medical account balances updated.
Frequently Asked Questions
The Social Health Insurance Fund (SHIF) replaced the National Hospital Insurance Fund (NHIF). NHIF contributions were calculated using tiered bands with a maximum cap of KES 1,700 per month. Under SHIF, contributions are calculated as a flat rate of 2.75% of the gross monthly salary, with no maximum cap, meaning higher earners pay significantly more.
Under the NSSF Act 2013, contributions are divided into Tier I (on salaries up to KES 7,000) and Tier II (on salaries from KES 7,001 up to KES 36,000). The total maximum contribution is 12% of the pensionable earnings (6% employee and 6% employer). For gross salaries above KES 36,000, the employee contribution is capped at KES 2,160, matched by KES 2,160 from the employer, totaling KES 4,320 per month.
The Affordable Housing Act, 2024, mandates that the Affordable Housing Levy is payable by all employees earning a salary in Kenya, as well as their employers. There are no general exemptions for private sector employees or startups. Both the employee and the employer must contribute 1.5% of the gross salary monthly.
Employees contributing to SHIF are entitled to an insurance relief equivalent to 15% of their monthly SHIF contribution. This relief is subtracted from the computed PAYE tax due, reducing the employee's total tax liability. Numeriq's payroll system applies this relief automatically to maximize net pay for your staff.