What is NSSF and the Rate Changes?
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The National Social Security Fund (NSSF) is Kenya's mandatory retirement savings scheme, governed by the NSSF Act No. 45 of 2013. Under the Act, contributions are 6% from the employee and 6% from the employer of pensionable pay, split into Tier I and Tier II, and they rise in phases as the lower and upper earnings limits increase.
Through January 2026 the lower earnings limit is KES 8,000 and the upper limit is KES 72,000, giving a maximum of KES 4,320 per side per month. From February 2026 the limits rise to KES 9,000 and KES 108,000, giving a maximum of KES 6,480 per side. There are no contributions on earnings above the upper limit.
The phased increases are implemented under the 2013 Act. Workers should review their contribution history on the NSSF portal to see how the change affects their payslip and take-home pay.
NSSF sits alongside SHIF, PAYE, and the Affordable Housing Levy on the payslip. Employers must remit by the 9th of the following month. Self-employed people can join voluntarily.
Tier I and Tier II Structure
Tier I covers pensionable pay up to the lower earnings limit, and Tier II covers pay between the lower and upper limits, with 6% applied to each side within those bands. The contribution is capped at the upper earnings limit, so it does not keep rising indefinitely.
Take a worker earning KES 20,000 a month, using the figures in force through January 2026. Tier I is 6% of KES 8,000, which is KES 480 per side. Tier II is 6% of the remaining KES 12,000, which is KES 720 per side. The total employee deduction is KES 1,200 per side, with the employer matching.
| Monthly Pay (KES) | Tier I employee (KES) | Tier II employee (KES) | Total employee (KES) |
|---|---|---|---|
| 20,000 | 480 | 720 | 1,200 |
The employer matches the employee contribution, so the combined amount is double the employee figure. These figures apply through January 2026; recompute from February 2026 using the higher limits. Confirm the current figures on the NSSF or KRA iTax portal.
The Dated NSSF Limits
The maximum contribution per side is KES 4,320 per month through January 2026 and KES 6,480 per month from February 2026. The increase comes from the lower and upper earnings limits rising under the phased implementation of the NSSF Act 2013.
| Item | Through January 2026 (KES) | From February 2026 (KES) |
|---|---|---|
| Lower Earnings Limit | 8,000 | 9,000 |
| Upper Earnings Limit | 72,000 | 108,000 |
| Tier I max per side | 480 | 540 |
| Tier II max per side | 3,840 | 5,940 |
| Maximum per side per month | 4,320 | 6,480 |
| Combined employee and employer | 8,640 | 12,960 |
For a worker at or above the upper earnings limit, the employee deduction is KES 4,320 per month through January 2026 and KES 6,480 from February 2026, with the employer matching. The contribution is capped at the upper limit, so earnings above it attract no further NSSF.
Employers should update payroll ahead of February 2026 so deductions match the new limits. Confirm the figures on the NSSF or KRA iTax portal.
Direct Impact on Employee Contributions
The change increases the maximum NSSF deduction as the earnings limits rise. A worker at or above the upper earnings limit moves from KES 4,320 per side through January 2026 to KES 6,480 per side from February 2026. Workers below the upper limit pay 6% within the tiers, so their deduction depends on their pensionable pay.
NSSF appears on the payslip alongside PAYE, SHIF, and the housing levy. Employers report and remit it monthly. Workers can view their deductions on their payslip or through the NSSF portal.
The deduction reduces take-home pay but also reduces chargeable pay for PAYE, since NSSF is taken before PAYE is computed. Review your payslip monthly for accuracy.
Higher earners are capped at the per-side maximum, so the increase from February 2026 is a fixed shilling amount for them. Lower earners pay 6% within the tiers. Check your own figure on the NSSF portal.
Monthly Deduction Breakdown
The table shows the employee NSSF deduction at sample salaries, using the figures in force through January 2026. Recompute from February 2026 using the higher limits. NSSF appears on the payslip alongside PAYE, SHIF, and the housing levy.
| Monthly Pensionable Pay (KES) | Employee NSSF through Jan 2026 (KES) | Notes |
|---|---|---|
| 20,000 | 1,200 | Tier I 480 plus Tier II 720 |
| 50,000 | 3,000 | Tier I 480 plus Tier II 2,520 |
| 72,000 and above | 4,320 | Capped at the upper earnings limit |
For pay at or above the upper earnings limit, the employee deduction is capped at KES 4,320 per side through January 2026 and KES 6,480 from February 2026. The employer matches the employee contribution.
Use the NSSF contribution calculator on the portal to find your own figure. Check your payslip and NSSF statement for accuracy.
Take-Home Pay Impact
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From February 2026, a worker at or above the upper earnings limit sees the NSSF deduction rise from KES 4,320 to KES 6,480 per side, an increase of KES 2,160 per month in the employee share. A worker below the upper limit sees a smaller change, since their deduction is 6% within the tiers.
Take a worker at the upper earnings limit. Through January 2026 the employee NSSF is KES 4,320. From February 2026 it is KES 6,480, so the employee share rises by KES 2,160 a month, with the employer matching. The exact effect on net pay also depends on SHIF, the housing levy, and PAYE.
Because NSSF is deducted before PAYE, a higher NSSF contribution slightly reduces chargeable pay, so the net effect on take-home pay is a little less than the headline increase. Model your own figures on the NSSF and KRA iTax portals.
The increase builds higher retirement savings over time. Plan your budget around the February 2026 step-up if you are at or near the upper earnings limit.
Benefits for Kenyan Workers
NSSF provides retirement, invalidity, and survivors benefits, funded by the Tier I and Tier II contributions from both the employee and the employer. The benefit amounts depend on contribution history and the rules in force, so confirm the current eligibility and benefit formulas on the NSSF portal.
Higher contributions build a larger pot over time, which supports a stronger benefit at retirement. Both sides pay 6% within the tiers up to the upper earnings limit.
The scheme covers workers in formal employment, with voluntary membership for the self-employed. Track your contributions on the NSSF portal so your record is accurate when you claim.
Review your NSSF statement regularly. Confirm the current benefit rules with NSSF rather than relying on a quoted figure.
Retirement, Invalidity, and Survivors Benefits
The retirement benefit is based on your accumulated Tier I and Tier II contributions. Invalidity and survivors benefits are also provided under the Act, subject to NSSF conditions. The exact amounts and eligibility are set by NSSF, so confirm them on the portal before relying on them.
Higher contributions under the rising limits feed into these benefits over time. Keep a steady contribution record from both the employee and employer sides.
Check your projected entitlement on the NSSF portal, and review your contribution history annually. Register early and stay compliant for smooth access.
For claims, apply through the NSSF portal with the required documents. Contact NSSF customer service for guidance on the current procedure.
Impact on Different Income Groups
The effect of the change depends on where your pay sits relative to the earnings limits. Workers at or above the upper limit see the full shilling increase from February 2026, while those below pay 6% within the tiers, so their increase is smaller.
For lower earners, NSSF is a percentage of pensionable pay within the tiers, so the deduction scales with pay. For higher earners, the contribution is capped at the upper earnings limit, so the deduction does not keep rising with salary.
Workers should review their payroll deductions on the NSSF portal to see their own position. The contribution reduces take-home pay but builds retirement savings.
Use the NSSF contribution calculator to model the impact on your net salary. Where you are unsure of a figure, confirm it on the NSSF or KRA iTax portal.
Lower-Income Workers
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For a worker earning below the lower earnings limit, NSSF is 6% of actual pensionable pay in Tier I, so the deduction is proportional to pay. For a worker between the lower and upper limits, Tier I is capped at the lower-limit amount and Tier II covers the remainder at 6%.
The deduction is a set percentage within the tiers, so it reflects pay rather than a flat charge. Lower earners therefore pay less in shilling terms than higher earners.
| Pensionable Pay (KES) | Employee NSSF through Jan 2026 (KES) | Employee NSSF from Feb 2026 (KES) |
|---|---|---|
| 8,000 | 480 | 480 |
| 15,000 | 900 | 900 |
The figures above use the dated limits; for pay within Tier I the amount is the same across the two periods, while higher pay reflects the rising limits. Lower-income earners should check their NSSF statement and confirm any exemption only where it genuinely applies. Contributions build retirement savings over time.
Middle and Higher-Income Earners
A worker at or above the upper earnings limit is capped, so the employee NSSF is KES 4,320 per side through January 2026 and KES 6,480 from February 2026. As a share of a high salary this is a small percentage, but it is a fixed shilling amount once you reach the cap.
Higher earners therefore see the full February 2026 increase of KES 2,160 in the employee share, while the percentage of their salary stays modest. The employer matches the contribution.
- Middle-income earners pay 6% within the tiers, scaling with pay up to the cap.
- Higher-income earners are capped at the upper earnings limit.
- The contribution builds retirement savings under Tier I and Tier II.
Track your contributions on the NSSF portal, and confirm your pension figures with NSSF. The contribution moves with you between jobs as part of your NSSF record.
Employer Responsibilities
Employers must deduct the employee NSSF, add the matching employer contribution, and remit the total by the 9th of the following month through the NSSF portal. Late remittance attracts penalties and interest under the NSSF Act, so confirm the current penalty position on the NSSF portal.
Employers handle the Tier I and Tier II split, capped at the upper earnings limit. For example, a worker at the upper limit attracts KES 4,320 per side through January 2026 and KES 6,480 from February 2026.
- Register employees with NSSF when they are hired.
- Deduct and remit the 6% contributions by the 9th of each month.
- File the monthly NSSF return through the portal.
- Keep records of deductions and remittances.
- Update payroll ahead of February 2026 for the new limits.
Confirm the current return process, paybill, and penalty position on the NSSF portal, since these can change. Keep records for audits and to support employee benefit claims.
Adapting to the Higher Limits
The employer contribution rises in step with the employee contribution as the limits increase. Employers should budget for the February 2026 step-up, especially where many staff sit at or above the upper earnings limit.
Update payroll software so the dated limits apply correctly from February 2026. This avoids under-deduction and the penalties that follow.
Use the NSSF contribution tools on the portal for projections. Train payroll staff so the Tier I and Tier II split and the cap are applied correctly.
Compliance and Penalties
Late remittance attracts penalties and interest under the NSSF Act. The exact rates can change, so confirm the current figures on the NSSF or KRA iTax portal rather than relying on a single quoted rate.
Set up automated payroll remittance and file the monthly return on time. This keeps the business compliant and protects employees' benefit entitlements.
Reconcile payroll against the NSSF statement each month. Contact NSSF to confirm any amounts owing before settling.
What Workers Need to Do Next
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Check your payslip for the correct NSSF deduction, especially from February 2026 when the limits rise, then register on the NSSF self-service portal to view your contribution history.
This lets you confirm whether the dated limits are being applied to your pay. Look at the Tier I and Tier II deductions alongside SHIF, PAYE, and the housing levy.
Once verified, manage your NSSF account through the portal. Follow these steps to stay on top of your contributions.
- Register on the NSSF self-service portal using your ID and KRA PIN.
- View your statement of account to track contributions from both sides.
- Set up updates so you can monitor your balance.
- Confirm your figures against your payslip each month.
- Raise any error with NSSF promptly through the portal.
A common issue is an outdated employer NSSF number, which can block access. Confirm the current support channels on the NSSF portal. This keeps your social security record accurate under the NSSF Act 2013.
Frequently Asked Questions
How do the NSSF rates affect Kenyan workers' monthly contributions?
NSSF is 6% from the employee and 6% from the employer of pensionable pay, split into Tier I and Tier II and capped at the upper earnings limit. The maximum employee deduction is KES 4,320 per side per month through January 2026 and KES 6,480 from February 2026. Confirm the current figures on the NSSF portal.
What is the structure of the NSSF rates for Kenyan workers?
Tier I covers pensionable pay up to the lower earnings limit (KES 8,000 through January 2026, KES 9,000 from February 2026), and Tier II covers pay up to the upper limit (KES 72,000 through January 2026, KES 108,000 from February 2026). Each side pays 6% within the tiers, capped at the upper limit.
How will the NSSF rates impact take-home pay?
From February 2026 a worker at or above the upper earnings limit sees the employee NSSF rise from KES 4,320 to KES 6,480 per side, an increase of KES 2,160 a month. Workers below the upper limit pay 6% within the tiers, so their change is smaller. Because NSSF is deducted before PAYE, the net effect on take-home pay is slightly less than the headline figure.
Are there benefits for Kenyan workers under NSSF?
Yes. NSSF provides retirement, invalidity, and survivors benefits based on the accumulated Tier I and Tier II contributions. The exact eligibility and benefit amounts are set by NSSF, so confirm them on the NSSF portal.
Who must contribute to NSSF?
NSSF is mandatory for employees in formal employment and their employers, and voluntary for the self-employed. Employers deduct the employee share and remit it with the matching employer share by the 9th of the following month. Confirm the detailed rules on the NSSF portal.
When do the higher NSSF limits take effect?
The current limits apply through January 2026, with the higher limits taking effect from February 2026 under the phased implementation of the NSSF Act 2013. Employers should update payroll ahead of February 2026 so deductions match the new limits.