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
Employeesโ 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.
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