NSSF Contribution Rates in Kenya 2026 Explained: Tier I, Tier II and What You Pay
Year 4 of the NSSF Act took effect in February 2026 -- here is what changed, how Tier I and Tier II work, and what employers and employees pay.
The National Social Security Fund (NSSF) is Kenya's mandatory pension scheme for workers. Under the NSSF Act 2013, contributions have been phased up over four years, and Year 4 took effect on 1 February 2026, raising the maximum monthly deduction for higher earners. Here is how the system works now.
The 2026 Rates
| Item | From February 2025 (Year 3) | From February 2026 (Year 4) |
|---|---|---|
| Contribution rate | 6% employee + 6% employer | 6% employee + 6% employer |
| Lower Earnings Limit (LEL) | KES 8,000 | KES 9,000 |
| Upper Earnings Limit (UEL) | KES 72,000 | KES 108,000 |
| Maximum employee contribution | KES 4,320 | KES 6,480 |
| Maximum combined contribution | KES 8,640 | KES 12,960 |
Year 4 completes the initial transition schedule. Future changes will be made through gazette notices.
How Tier I and Tier II Work
Tier I is 6% of pensionable earnings up to the Lower Earnings Limit of KES 9,000 — a maximum of KES 540 each from the employee and employer. Tier II is 6% of pensionable earnings between KES 9,000 and the Upper Earnings Limit of KES 108,000 — a maximum of KES 5,940 each.
So someone earning KES 108,000 or more pays the full KES 6,480 (540 + 5,940), matched by their employer. Someone earning KES 50,000 pays 6% of 50,000 = KES 3,000 (540 Tier I + 2,460 Tier II).
Examples
| Monthly pensionable pay | Employee contribution | Employer contribution | Total to NSSF |
|---|---|---|---|
| KES 9,000 | KES 540 | KES 540 | KES 1,080 |
| KES 30,000 | KES 1,800 | KES 1,800 | KES 3,600 |
| KES 50,000 | KES 3,000 | KES 3,000 | KES 6,000 |
| KES 108,000 and above | KES 6,480 | KES 6,480 | KES 12,960 |
Contracting Out of Tier II
Employers with a registered occupational pension scheme that meets the required standards may opt to pay Tier II contributions into that scheme instead of NSSF. Tier I always goes to NSSF. If your payslip shows a smaller NSSF figure than expected and you are in a company pension scheme, this is likely why.
Deadlines and Penalties for Employers
Employers must remit contributions by the 9th of the following month. Late remittance attracts penalties under the Act, and directors can be held personally liable for unremitted deductions. NSSF contributions are deducted before PAYE is calculated, so they also reduce the employee's tax.
How to Check Your NSSF Statement
- Online: register on the NSSF self-service portal with your ID and NSSF number to view and download statements.
- SMS/USSD: NSSF offers mobile services for checking contributions; check nssf.or.ke for the current code.
- Branches and Huduma Centres: request a printed statement with your ID.
Check at least once a year that every month your employer deducted actually reached NSSF.
How the Rates Were Phased In
The NSSF Act 2013 replaced the old flat KES 200 contribution with a percentage-based system, but court cases delayed implementation for years. Once the courts cleared the way, the rates were introduced in annual steps from February 2023:
| Phase | From | Lower Earnings Limit | Upper Earnings Limit | Maximum employee contribution |
|---|---|---|---|---|
| Year 1 | February 2023 | KES 6,000 | KES 18,000 | KES 1,080 |
| Year 2 | February 2024 | KES 7,000 | KES 36,000 | KES 2,160 |
| Year 3 | February 2025 | KES 8,000 | KES 72,000 | KES 4,320 |
| Year 4 | February 2026 | KES 9,000 | KES 108,000 | KES 6,480 |
What You Get Back
NSSF is a retirement savings scheme. Your contributions, your employer's contributions and the interest credited to your account build a retirement benefit, payable when you reach retirement age. Benefits may also be paid in specific situations, such as invalidity, emigration or to survivors on a member's death. Nominate beneficiaries and keep the nomination updated.
Tips for Employees
- Check your statement at least once a year to confirm all months were remitted.
- Keep payslips as proof of deductions.
- Update your details when you change jobs, so contributions from different employers land in one account.
- If your employer deducts but does not remit, report it to NSSF — employers are legally liable.
NSSF 2026 -- FAQ
What is the maximum NSSF deduction in 2026?
KES 6,480 a month for the employee, matched by KES 6,480 from the employer, for anyone earning KES 108,000 or more from February 2026.
Is NSSF deducted before PAYE?
Yes. NSSF contributions are an allowable deduction and reduce taxable pay.
Can self-employed people contribute to NSSF?
Yes. Self-employed and informal-sector workers can register and contribute voluntarily through NSSF's schemes.
When did the Year 4 NSSF rates start?
Year 4 rates took effect on 1 February 2026, raising the Lower Earnings Limit to KES 9,000 and the Upper Earnings Limit to KES 108,000.
Can I withdraw my NSSF savings early?
NSSF benefits are designed for retirement. Early access applies only in specific circumstances set out in the law, such as invalidity or emigration.
Final Thoughts
NSSF in 2026 is simple once you know the two numbers: KES 9,000 (Tier I limit) and KES 108,000 (Tier II limit), each charged at 6% from both employee and employer. Employers should update payroll, remit by the 9th, and keep records; employees should check their statements regularly.