Kenya’s National Social Security Fund (NSSF) continues its phased implementation of the NSSF Act 2013, introducing new contribution limits effective 1 February 2026.

These changes increase the pensionable earnings limits, meaning both employers and employees may see higher NSSF contributions depending on salary levels.

For HR and payroll teams, it is important to understand how these changes affect payroll calculations and employee deductions.

Background: NSSF Act 2013

The NSSF Act 2013 transformed NSSF into a mandatory pension scheme designed to enhance retirement savings for Kenyan workers.

Under the Act:

• Total contributions equal 12% of pensionable earnings
• 6% is contributed by the employee
• 6% is contributed by the employer

The implementation of the Act has been phased since 2023, gradually increasing the pensionable earnings limits each year.

What Changes in February 2026

Effective 1 February 2026, both the Lower Earnings Limit (LEL) and Upper Earnings Limit (UEL) will increase.

Although the 6% contribution rate remains unchanged, the expanded earnings bands mean employees earning above the lower threshold will contribute more to NSSF.

New NSSF Contribution Structure

Tier	Earnings Range	Employee (6%)	Employer (6%)	Total
Tier I	Up to KES 9,000	540	540	1,080
Tier II	KES 9,001 – 108,000	5,940	5,940	11,880
Total Maximum	—	6,480	6,480	12,960

This means the maximum monthly NSSF contribution will increase to KES 12,960 (KES 6,480 each from employer and employee).

How NSSF Contributions Have Increased Over Time

The phased implementation has gradually increased contribution limits each year.

Year	Lower Earnings Limit	Upper Earnings Limit	Total Contribution
2023	6,000	18,000	2,160
2024	7,000	36,000	4,320
2025	8,000	72,000	8,640
2026	9,000	108,000	12,960

This progression reflects the government’s goal of strengthening retirement savings through higher pension contributions.

Impact on Employees’ Salaries

The new NSSF limits will affect employees differently depending on their income levels.

Example 1: Employee earning KES 50,000

• Tier I: 6% × 9,000 = 540
• Tier II: (50,000 – 9,000) × 6% = 2,460

Total employee deduction = KES 3,000

Example 2: Employee earning above KES 108,000

• Tier I: 6% × 9,000 = 540
• Tier II capped at 108,000: 5,940

Total employee deduction = KES 6,480

These examples illustrate how contributions increase for employees earning above the lower earnings limit.

Implications for Employers

The new NSSF rates have several implications for employers and HR teams.

1. Payroll Adjustments

Organizations must update payroll systems to apply the new lower and upper earnings limits.

2. Budget Planning

Employer contributions will increase for employees earning above the lower earnings limit.

3. Employee Communication

HR teams should inform employees about changes to their NSSF deductions.

4. Compliance

Accurate payroll deductions and timely remittance to NSSF remain essential to avoid penalties.

What Employees Should Expect

Employees should be aware that:

• NSSF deductions may increase slightly depending on salary
• Take-home pay may reduce marginally
• Retirement benefits will improve over time due to higher contributions

Employees are encouraged to review their payslips to confirm that deductions are applied correctly.

How Zuri HR Helps Businesses Stay Compliant

Changes in statutory deductions can make payroll management challenging for organizations.

Zuri HR simplifies payroll compliance by:

• Automatically applying updated statutory rates
• Calculating NSSF contributions based on the latest limits
• Generating compliant payslips
• Integrating payroll with employee records and attendance

With automated payroll calculations, organizations can ensure they remain compliant with Kenyan statutory requirements without manual updates.

Conclusion

The new NSSF rates effective February 2026 represent the next phase of Kenya’s pension reform, increasing retirement contributions and expanding pensionable earnings limits.

While these changes may slightly increase payroll deductions, they strengthen long-term retirement benefits for employees.

Organizations should review their payroll systems and ensure the updated contribution limits are applied correctly.

Modern payroll systems such as Zuri HR help organizations automate statutory deductions and maintain compliance with evolving regulations.