NSSF Kenya 2026: New Rates, Tier I and Tier II Contributions Explained

The National Social Security Fund, better known as the NSSF, is the statutory pension scheme that every employer in Kenya must contribute to for each member of staff. It changed again in February 2026, when the Year 4 rates under the NSSF Act 2013 took effect and raised the maximum monthly contribution. If you run payroll in Kenya, or you are a foreign company hiring here through an employer of record, this guide explains what NSSF is, what the 2026 rates are, how Tier I and Tier II are worked out, and what you have to file every month. You can put any salary through our free NSSF calculator as you read.

What the NSSF Is and Who Must Contribute

NSSF is a mandatory retirement savings fund set up under the NSSF Act 2013. It replaced the old flat-rate scheme with an earnings-based, two-tier structure that has been phased in over several years. Both the employee and the employer pay in, and the money is credited to the employee's individual retirement account. Every employer with at least one employee must register with NSSF and remit contributions. That covers Kenyan companies, foreign-owned subsidiaries, NGOs, and any organisation that pays a salary in Kenya. There is no exemption for small teams or for particular sectors.

The 2026 Change: NSSF Year 4 Rates

The NSSF Act 2013 laid out a gradual rise in contributions over several years, and the Year 4 step took effect in February 2026. The rate itself did not change: it stays at 6 percent from the employee and 6 percent from the employer. What moved is the earnings ceiling the 6 percent applies to, which pushed the maximum monthly contribution up to KES 6,480 from each side, or KES 12,960 in total per employee. Middle and higher earners now see a larger deduction than in earlier years. An employee earning below the lower band sees no change.

Tier I and Tier II Explained

NSSF divides pensionable pay into two tiers, and the 6 percent rate applies within each one.

• Tier I covers pensionable pay up to KES 9,000 per month. The employee pays 6 percent and the employer matches it, so the most either side pays in Tier I is KES 540.
• Tier II covers pensionable pay from KES 9,001 up to the upper limit of KES 108,000 per month. The split is again 6 percent each, for a maximum of KES 5,940 from each side.

Add the two tiers together and the most any employee and employer each contribute is KES 6,480 a month. An employee earning KES 108,000 or more reaches that ceiling. Below it, the contribution is simply 6 percent of actual pensionable pay.

Worked Examples at Three Salary Levels

The table below shows the NSSF split at three gross pay levels using the 2026 rates. Each side (employee and employer) pays the same amount.

At KES 8,000 the whole salary falls inside Tier I, so the contribution is 6 percent of the full amount. At KES 50,000, Tier I is capped at KES 540 and the remaining KES 41,000 is charged at 6 percent in Tier II. At KES 150,000 the employee is above the KES 108,000 ceiling, so both sides reach the maximum of KES 6,480.

Employer and Employee Responsibilities

The employer carries the administrative burden. It deducts the employee's 6 percent share from gross pay, adds its own matching 6 percent as an employer cost, and remits both to NSSF. The employer also files the monthly contribution schedule on the NSSF employer portal, listing each employee and the amount paid. The employee does not deal with NSSF directly, but the deduction should appear as a clear line on the payslip, which is a requirement under the Employment Act. Our guide to payroll processing in Kenya sets out the full monthly cycle around this.

Deadlines, Filing, and Penalties

NSSF contributions are due by the 9th of the month following the payroll, the same deadline that applies to PAYE, SHIF, and the Housing Levy. Late payment attracts a penalty of 5 percent of the unpaid amount for each month, or part of a month, that it stays outstanding. Persistent non-remittance can also expose company directors to personal and even criminal liability, because employee deductions that are withheld but not paid over are treated seriously. Keeping filings on time is one of the main reasons employers move payroll to a managed payroll service.

Contracting Out of Tier II

An employer that runs an approved occupational or umbrella pension scheme registered with the Retirement Benefits Authority can apply to contract out of Tier II. In that case the Tier II portion is paid into the employer's own scheme rather than to NSSF, while Tier I always goes to NSSF. Contracting out requires formal approval and reference numbers, so it is not something an employer can simply decide to do on its own. Most employers without an existing pension scheme pay both tiers to NSSF.

How NSSF Sits Alongside SHIF, Housing Levy, and PAYE

NSSF is only one of the statutory items on a Kenyan payslip. Alongside it sit SHIF at 2.75 percent of gross, the Affordable Housing Levy at 1.5 percent from each side, and PAYE income tax on the balance. To see how all of these come off a salary at once, use our net salary calculator, and for the wider compliance picture read our Kenya payroll compliance guide.

Staying Compliant

Getting NSSF right is a matter of applying the correct tier limits every month, remitting both shares by the 9th, and filing the schedule accurately. For companies with a Kenyan entity, our payroll processing service handles the calculation, remittance, and filing, and a payroll audit can confirm past periods were correct. For international companies without a local entity, our employer of record service manages NSSF and every other statutory obligation under our own registration, with staff active in 48 hours.