The NSSF Act, 2013 introduced a two-tier contribution framework aimed at improving retirement savings adequacy for Kenyan workers. The implementation began in February 2023 and has been rolled out progressively. The February 2026 adjustment represents the fourth phase of this rollout, with future changes to be implemented through Gazette Notices.

With effect from 1^st February 2026, the National Social Security Fund (NSSF) contribution structure in Kenya will change significantly as part of the phased implementation of the NSSF Act, 2013. While the contribution rates remain at 6% for employees and 6% for employers, the Lower Earnings Limit (LEL) and Upper Earnings Limit (UEL) used to calculate pensionable earnings will increase substantially, resulting in higher monthly deductions for many employees and increased statutory costs for employers.

What Is Changing from February 2026?

Tier	Earnings Range	Employee 6%	Employer 6%	Total
Tier I	Up to Kshs 9,000	Kshs. 540	Kshs. 540	Kshs 1,080
Tier II	Kshs 9,001-108,000	Kshs. 5,940	Kshs. 5,940	Kshs. 11,880
Total	Total Contribution per month	Kshs 6,480	Kshs 6,480	Kshs 12,960

The Lower Earnings Limit (Tier I) increases to KES 9,000. At 6%, both employee and employer will contribute KES 540 each per month, totaling KES 1,080.

The Upper Earnings Limit (Tier II) increases to KES 108,000. Earnings between KES 9,001 and KES 108,000 will attract a 6% contribution from both employee and employer, amounting to KES 5,940 each.

The maximum combined monthly NSSF contribution therefore increases to KES 12,960 for employees earning above KES 108,000.

Impact on Employees

Employees will experience varying impacts depending on income level. Lower-income employees may see minimal changes, while middle- and higher-income earners will experience higher deductions as the Tier II ceiling expands. Although take-home pay will reduce, long-term retirement benefits will improve.

Example 1: Employee Earning Below Kshs 50,000

• Tier I: 6%*9,000=540
• Tier II: (50,000-9,000) *6%) =2,460
• Total Employee Deduction: 3,000

 Example 2: Employee Earning Above Kshs 108,000

• Tier I: 6%*9,000=540
• Tier II Capped at Kes 108,000: (108,000-9,000) *6%) =5,940
• Total Employee Deduction: 6,480

Implications for Employers

Employers must update payroll systems to reflect the new limits, budget for increased statutory contributions, and ensure accurate monthly remittances.

Employers may also contract out Tier II contributions to a RBA-registered pension scheme, subject to compliance requirements.

Conclusion

The revised NSSF contribution framework effective 1^st February 2026 significantly expands pensionable earnings while maintaining the existing contribution rate. Employers and employees should prepare adequately to ensure smooth implementation and compliance.

Businesses should therefore review payroll configurations, communicate changes to employees in advance, assess the financial impact on compensation structures, and seek professional advice where necessary to ensure full compliance.