🇰🇪 Kenya: Update to NSSF Contribution Calculations (Effective March 2026)

Effective March 1, 2026, Kenya's National Social Security Fund (NSSF) contributions will be applied using a two-tier mandatory structure, as outlined below.

Updated NSSF contribution structure

Tier I (Mandatory)

Applies to the first KSh 9,000 of pensionable earnings.

• Employee contribution: KSh 540

• Employer contribution: KSh 540

Tier II (Mandatory)

Applies to pensionable earnings above KSh 9,000 and up to KSh 108,000.

• Employee contribution: 6% on this earnings band

• Employer contribution: 6% on this earnings band

Contribution cap

• Employees earning above KSh 108,000 will have a maximum monthly NSSF deduction of KSh 6,480

• This amount is matched by the employer, bringing the total maximum monthly contribution to KSh 12,960

Impact on payroll

• This change will take effect starting with the March 2026 payroll

• Employees’ net salary will decrease as a result of the updated mandatory contributions

• Employer statutory costs will also increase accordingly

No action is required from clients at this time. Payroll calculations will be updated automatically to reflect this change.