What Kenyans Should Know About the Latest NSSF Contribution Changes

Employees in Kenya may notice that the amount deducted from their salaries for retirement savings has increased in 2026. The change is part of the gradual implementation of the National Social Security Fund (NSSF) Act, which has introduced higher pensionable earnings limits over several years.

The latest adjustment took effect in February 2026. It affects how much employees and employers contribute every month, particularly where an employee earns more than KSh 9,000.

Understanding the new arrangement is important because the deduction appears on monthly payslips and directly affects the amount an employee receives after statutory deductions.

Under the 2026 arrangement, the lower earnings limit increased from KSh 8,000 to KSh 9,000. The upper earnings limit also increased from KSh 72,000 to KSh 108,000.

The contribution rate remains at 6 per cent for employees and another 6 per cent for employers. This means both parties contribute towards the employee’s retirement savings.

The contributions are divided into two categories known as Tier I and Tier II.

Tier I covers the first KSh 9,000 of pensionable earnings. The employee contributes KSh 540, while the employer contributes an equal amount.

Tier II covers pensionable earnings above KSh 9,000, up to the maximum limit of KSh 108,000. Both the employee and employer contribute 6 per cent of the amount falling within this category.

For employees earning KSh 108,000 or more, the maximum monthly contribution is KSh 6,480 from the employee and another KSh 6,480 from the employer.

The amount deducted depends on an employee’s monthly pensionable earnings. The following examples illustrate how the 2026 arrangement works.

The first KSh 9,000 attracts a contribution of KSh 540. The remaining KSh 6,000 attracts another KSh 360.

The employee therefore contributes KSh 900, with the employer adding another KSh 900.

The Tier I contribution is KSh 540. The remaining KSh 41,000 attracts a Tier II contribution of KSh 2,460.

The employee’s total monthly deduction is therefore KSh 3,000. The employer contributes an additional KSh 3,000.

The employee contributes KSh 540 under Tier I and KSh 5,460 under Tier II.

This brings the monthly employee contribution to KSh 6,000. The employer is required to contribute the same amount.

These examples show why employees earning different salaries do not necessarily have the same NSSF deductions.

The increase in the earnings limits means some employees contribute more towards NSSF than they did under the previous arrangement.

For instance, an employee earning KSh 100,000 previously had a maximum employee contribution of KSh 4,320 under the 2025 limits. Under the 2026 arrangement, the contribution becomes KSh 6,000.

This can affect take-home pay because the NSSF deduction is made before the employee receives their net salary. However, the additional contribution is allocated towards retirement savings rather than being an ordinary payroll charge.

Employers are responsible for deducting the employee’s share and adding their own contribution before submitting the money to NSSF.

According to the Fund’s 2026 notice, employers should remit the contributions by the ninth day of the following month.

For example, contributions relating to October should be submitted by November 9.

Employees should therefore avoid assuming that a deduction shown on a payslip automatically means the money has already appeared in their NSSF records.

Workers can use NSSF’s available self-service channels to review their contribution records.

The Fund provides access to its services through the *303# USSD service and its online self-service portal.

After checking the records, an employee can compare the contributions shown against the deductions appearing on their payslips.

If a particular month is missing, the employee can ask the employer’s payroll department to establish whether the payment was submitted. Where the issue remains unresolved, the employee can contact NSSF for further assistance.

Keeping monthly payslips also makes it easier to identify differences when reviewing contribution records.

The 2026 NSSF adjustment is another stage in the implementation of the pension contribution framework established under the NSSF Act.

Although the higher deductions may reduce the amount some employees receive in their monthly salaries, the contributions are intended to build retirement savings over time.

Employees should understand how their deductions are calculated, check whether their employers are submitting the required payments and keep records of their monthly contributions.

Knowing these details makes it easier to identify payroll discrepancies and understand how much money is being set aside for retirement.

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