NSSF 2026 Rates Explained for Kenyan Employers

Last updated: 25 June 2026

NSSF is a monthly pension contribution that affects both the employee and the employer. Kenyan employers should check NSSF carefully because the contribution is not only an employee deduction: the employer also contributes a matching amount.

What changed for 2026?

For Year 4 contribution planning from February 2026, the public payroll assumption commonly used is a Lower Earnings Limit of KSh 9,000 and an Upper Earnings Limit of KSh 108,000. Employee contribution is estimated at 6% and the employer matches the employee contribution.

Simple NSSF estimate

• Tier I income: up to KSh 9,000
• Tier II income: earnings above KSh 9,000 up to KSh 108,000
• Employee contribution: 6%
• Employer contribution: 6%
• Estimated maximum employee contribution: KSh 6,480
• Estimated maximum employer contribution: KSh 6,480

Why employers should care

NSSF affects employee net pay and employer payroll cost. If you quote salaries without including employer statutory costs, your true employment cost may be higher than expected. This is especially important for SMEs hiring new staff, budgeting for payroll, or comparing outsourced payroll options.

Monthly NSSF checklist

1. Confirm pensionable gross pay for each employee.
2. Calculate employee and employer NSSF.
3. Review any Tier II pension arrangement where applicable.
4. Keep schedules and payment evidence in the monthly payroll folder.
5. Reconcile NSSF with payroll summaries before closing the month.

You can estimate payroll deductions using the Reworked Kenya Net Pay Calculator. Reworked can also help prepare payroll reports and statutory schedules for monthly filing support.

Disclaimer: This guide is for planning only. Confirm current NSSF requirements through official notices or request professional support before remitting.