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Rates checked 9 Nov 2026
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Pensions & tax

NSSF Rates in Kenya 2026: Tier I and Tier II, Who Contributes What

NSSF kept the rate at 6% each for employee and employer, but raised the earnings limits from February 2026. Here is exactly what you or your staff now pay, with a calculator and the one thing most guides get wrong about who is affected.

By Oscar Radido Oyomba, Editor-in-Chief · · 8 min readFigures checked against PwC and KPMG summaries in October 2026
the nssf building
Rate, each side
6%
Tier I limit
KES 9,000
Tier II limit
KES 108,000
Maximum each
KES 6,480

Is this guide for you?

Read on if

  • You or your staff earn more than KES 72,000 a month: your deduction rises, by up to KES 2,160.
  • You are an employer and need the new limits and the 9th-of-the-month remittance date.

You can skip it if

  • You earn KES 72,000 or less: your NSSF deduction is unchanged.
NSSF rates for 2026: employer and employee guide
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Title slide: Kenya NSSF Rates 2026, the definitive employer and employee guide. Tier I and II calculations, limits and compliance for Year 4 implementation.

Title slide: Kenya NSSF Rates 2026, the definitive employer and employee guide. Tier I and II calculations, limits and compliance for Year 4 implementation.

What changed in 2026

Year 4 of the phased rates in the NSSF Act, 2013 took effect on 1 February 2026. The percentage stayed at 6%. What moved are the earnings limits used to calculate it, which pushes up the maximum monthly contribution for higher earners.

Same 6%, higher ceiling
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The 2026 NSSF update raises the earnings ceiling while holding the base rate steady. No change to the base rate: employees and employers both contribute 6 percent of pensionable earnings. New upper earnings limit for Tier II is KES 108,000. New maximum combined monthly contribution is KES 12,960, made of KES 6,480 from the employee and KES 6,480 from the employer.

The 2026 NSSF update raises the earnings ceiling while holding the base rate steady. No change to the base rate: employees and employers both contribute 6 percent of pensionable earnings. New upper earnings limit for Tier II is KES 108,000. New maximum combined monthly contribution is KES 12,960, made of KES 6,480 from the employee and KES 6,480 from the employer.
Read this slide as text
  • 6%: no change to the base rate. Employees and employers both contribute 6% of pensionable earnings.
  • KES 108,000: the new upper earnings limit (Tier II).
  • KES 12,960: the new maximum combined monthly contribution (KES 6,480 employee plus KES 6,480 employer).
Year 3 compared with Year 4
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Year-over-year statutory limits from Year 3 to Year 4. Effective date: 1 February 2025 then 1 February 2026. Lower earnings limit for Tier I: KES 8,000 then KES 9,000. Upper earnings limit for Tier II: KES 72,000 then KES 108,000. Employee and employer rates: 6 percent in both years. Maximum employee contribution: KES 4,320 then KES 6,480. Maximum employer contribution: KES 4,320 then KES 6,480. Maximum combined contribution: KES 8,640 then KES 12,960.

Year-over-year statutory limits from Year 3 to Year 4. Effective date: 1 February 2025 then 1 February 2026. Lower earnings limit for Tier I: KES 8,000 then KES 9,000. Upper earnings limit for Tier II: KES 72,000 then KES 108,000. Employee and employer rates: 6 percent in both years. Maximum employee contribution: KES 4,320 then KES 6,480. Maximum employer contribution: KES 4,320 then KES 6,480. Maximum combined contribution: KES 8,640 then KES 12,960.
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  • Effective date: 1 February 2025 (Year 3), 1 February 2026 (Year 4).
  • Lower earnings limit (Tier I): KES 8,000, now KES 9,000.
  • Upper earnings limit (Tier II): KES 72,000, now KES 108,000.
  • Employee and employer rates: 6% in both years.
  • Maximum employee contribution: KES 4,320, now KES 6,480.
  • Maximum employer contribution: KES 4,320, now KES 6,480.
  • Maximum combined: KES 8,640, now KES 12,960.

PwC’s and KPMG’s Year 4 summaries both give these limits and maximums.

Who pays what

The employee and employer contribute equally. The employer deducts the employee’s 6% through payroll, adds its own matching 6%, and remits the combined 12% to NSSF.

An equal split, collected by the employer
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Statutory contributions are an exact equal split between employee and employer. A donut chart shows employee deducted 6 percent and employer matched 6 percent. The financial burden is shared equally on all pensionable earnings. The employer acts as the collection agent, deducting the employee’s 6 percent directly through payroll. The employer matches that exact amount with 6 percent company funds and remits the combined 12 percent to NSSF.

Statutory contributions are an exact equal split between employee and employer. A donut chart shows employee deducted 6 percent and employer matched 6 percent. The financial burden is shared equally on all pensionable earnings. The employer acts as the collection agent, deducting the employee’s 6 percent directly through payroll. The employer matches that exact amount with 6 percent company funds and remits the combined 12 percent to NSSF.
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  • The financial burden is shared equally on all pensionable earnings.
  • The employer acts as the collection agent, deducting the employee’s 6% through payroll.
  • The employer matches that amount with 6% company funds and remits the combined 12% to NSSF.

The 6% applies to pensionable earnings. Payroll systems usually use gross monthly pay, so confirm with NSSF how any allowances in your pay are treated.

Tier I and Tier II

The two tiers are slices of the same 6%. Tier I is the first KES 9,000 of earnings. Tier II is everything from KES 9,001 up to the KES 108,000 ceiling. Pay above the ceiling attracts no NSSF contribution.

A KES 150,000 salary across the bands
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How the NSSF Tier I and Tier II bands map to a standard monthly gross salary, with an example of KES 150,000. Tier I covers 0 to KES 9,000 and attracts 6 percent from the employee and 6 percent from the employer. Tier II covers KES 9,001 to KES 108,000 and attracts 6 percent employee plus 6 percent employer. Earnings from KES 108,001 to KES 150,000 are labelled non-pensionable and attract 0 percent NSSF contribution. A note says any earnings above KES 108,000 fall outside the NSSF pensionable bands.

How the NSSF Tier I and Tier II bands map to a standard monthly gross salary, with an example of KES 150,000. Tier I covers 0 to KES 9,000 and attracts 6 percent from the employee and 6 percent from the employer. Tier II covers KES 9,001 to KES 108,000 and attracts 6 percent employee plus 6 percent employer. Earnings from KES 108,001 to KES 150,000 are labelled non-pensionable and attract 0 percent NSSF contribution. A note says any earnings above KES 108,000 fall outside the NSSF pensionable bands.
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Example: KES 150,000 gross salary.

  • Tier I: 0 to KES 9,000, attracts 6% employee and 6% employer.
  • Tier II: KES 9,001 to KES 108,000, attracts 6% employee and 6% employer.
  • KES 108,001 to KES 150,000: 0% NSSF contribution.
A wording point on the slide.The slide labels pay above KES 108,000 “non-pensionable”. It is more accurate to say it is above the ceiling, so no NSSF contribution is charged on it. It is still part of your pay.
Tier I: a flat KES 540 each
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Tier I establishes a baseline contribution for the first KES 9,000 of earnings. 6 percent times KES 9,000 equals KES 540. Employee deduction KES 540 maximum, employer match KES 540 maximum, total Tier I remittance KES 1,080. For any employee earning KES 9,000 or more, Tier I is always a flat KES 1,080 total per month.

Tier I establishes a baseline contribution for the first KES 9,000 of earnings. 6 percent times KES 9,000 equals KES 540. Employee deduction KES 540 maximum, employer match KES 540 maximum, total Tier I remittance KES 1,080. For any employee earning KES 9,000 or more, Tier I is always a flat KES 1,080 total per month.
Read this slide as text

Band: the first KES 9,000 of monthly pensionable earnings. 6% × KES 9,000 = KES 540.

  • Employee deduction: KES 540 (maximum).
  • Employer match: KES 540 (maximum).
  • Total Tier I remittance: KES 1,080.

For any employee earning KES 9,000 or more, Tier I is a flat KES 1,080 total per month.

Tier II: up to KES 5,940 each
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Tier II captures middle-band earnings up to the new statutory maximum. The formula is 6 percent times the earnings between KES 9,001 and KES 108,000. It applies only to earnings above KES 9,000, capping at KES 108,000. Employee deduction is variable up to a maximum of KES 5,940, employer match is variable up to a maximum of KES 5,940, and the total Tier II maximum remittance is KES 11,880. A hard cap marker shows KES 108,000 earnings.

Tier II captures middle-band earnings up to the new statutory maximum. The formula is 6 percent times the earnings between KES 9,001 and KES 108,000. It applies only to earnings above KES 9,000, capping at KES 108,000. Employee deduction is variable up to a maximum of KES 5,940, employer match is variable up to a maximum of KES 5,940, and the total Tier II maximum remittance is KES 11,880. A hard cap marker shows KES 108,000 earnings.
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Formula: 6% × [earnings between KES 9,001 and KES 108,000].

  • Applies only to earnings above KES 9,000, capping at KES 108,000.
  • Employee deduction: variable, up to KES 5,940.
  • Employer match: variable, up to KES 5,940.
  • Total Tier II maximum remittance: KES 11,880.

Add the two maximums and you get the headline figure: KES 540 plus KES 5,940 is KES 6,480 each, or KES 12,960 combined.

How to calculate it, and a calculator

For monthly pensionable earnings G: Tier I is 6% of the smaller of G and 9,000. Tier II is 6% of the amount between 9,000 and the smaller of G and 108,000. Add the two for the employee deduction. The employer matches it, so the total remitted is double.

The calculation in five steps
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The algorithmic flowchart for calculating total monthly NSSF remittance. Step 1: input gross pensionable earnings G. Step 2, Tier I: calculate the smaller of G and 9,000, times 6 percent. Step 3: is G above 9,000? If yes, step calculate Tier II as the larger of zero and the smaller of G and 108,000 minus 9,000, times 6 percent. If no, skip to step 4. Step 4: combine Tier I and Tier II for the total employee deduction. Step 5: multiply the employee deduction by 2 for the total NSSF remittance.

The algorithmic flowchart for calculating total monthly NSSF remittance. Step 1: input gross pensionable earnings G. Step 2, Tier I: calculate the smaller of G and 9,000, times 6 percent. Step 3: is G above 9,000? If yes, step calculate Tier II as the larger of zero and the smaller of G and 108,000 minus 9,000, times 6 percent. If no, skip to step 4. Step 4: combine Tier I and Tier II for the total employee deduction. Step 5: multiply the employee deduction by 2 for the total NSSF remittance.
Read this slide as text
  1. Input gross pensionable earnings (G).
  2. Tier I: min(G, 9,000) × 6%.
  3. Is G above 9,000? If yes, Tier II: max(0, min(G, 108,000) − 9,000) × 6%. If no, skip.
  4. Combine Tier I and Tier II: the total employee deduction.
  5. Multiply the employee deduction by 2: the total NSSF remittance.

Employee deduction

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Employer match

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Total to NSSF

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Extra vs Year 3 (employee)

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Default example: KES 50,000 a month.

Uses the Year 4 limits (KES 9,000 and KES 108,000) and compares with Year 3 (KES 8,000 and KES 72,000). Both assume 6% on pensionable earnings and no contracting out.

Worked examples

A KES 50,000 earner has KES 9,000 in Tier I and KES 41,000 in Tier II. Their employee deduction is KES 540 plus KES 2,460, which is KES 3,000. The employer adds KES 3,000, so KES 6,000 goes to NSSF.

Six salaries, worked through
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Standard salary calculations mapped under the 2026 framework. KES 9,000 gross: Tier I employee 540, Tier II employee 0, total employee 540, employer match 540, total to NSSF 1,080. KES 20,000: 540, 660, 1,200, 1,200, 2,400. KES 30,000: 540, 1,260, 1,800, 1,800, 3,600. KES 50,000: 540, 2,460, 3,000, 3,000, 6,000. KES 108,000: 540, 5,940, 6,480, 6,480, 12,960. KES 150,000: 540, 5,940, 6,480, 6,480, 12,960.

Standard salary calculations mapped under the 2026 framework. KES 9,000 gross: Tier I employee 540, Tier II employee 0, total employee 540, employer match 540, total to NSSF 1,080. KES 20,000: 540, 660, 1,200, 1,200, 2,400. KES 30,000: 540, 1,260, 1,800, 1,800, 3,600. KES 50,000: 540, 2,460, 3,000, 3,000, 6,000. KES 108,000: 540, 5,940, 6,480, 6,480, 12,960. KES 150,000: 540, 5,940, 6,480, 6,480, 12,960.
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  • KES 9,000: employee 540 (Tier I 540, Tier II 0); employer 540; total 1,080.
  • KES 20,000: employee 1,200 (540 + 660); employer 1,200; total 2,400.
  • KES 30,000: employee 1,800 (540 + 1,260); employer 1,800; total 3,600.
  • KES 50,000: employee 3,000 (540 + 2,460); employer 3,000; total 6,000.
  • KES 108,000: employee 6,480 (540 + 5,940); employer 6,480; total 12,960.
  • KES 150,000: employee 6,480 (540 + 5,940); employer 6,480; total 12,960.

We recalculated every row, and they are correct. The last two rows are the same because pay above KES 108,000 attracts nothing more.

The contribution rises, then flattens at KES 108,000
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Line chart titled the 2026 update is a ceiling shift: deductions permanently plateau at KES 108,000. Total combined NSSF contribution rises in a straight line with gross monthly salary until the new KES 108,000 upper limit, then flattens at about KES 13,000. A note says there is zero additional NSSF burden for earnings above KES 108,000.

Line chart titled the 2026 update is a ceiling shift: deductions permanently plateau at KES 108,000. Total combined NSSF contribution rises in a straight line with gross monthly salary until the new KES 108,000 upper limit, then flattens at about KES 13,000. A note says there is zero additional NSSF burden for earnings above KES 108,000.
Read this slide as text

Total combined NSSF contribution (vertical axis, up to KES 15,000) against gross monthly salary (horizontal axis, up to KES 200,000). It climbs steadily to the new KES 108,000 upper limit, then plateaus. Zero additional NSSF burden for earnings above KES 108,000.

“Permanently” on the slide’s title is too strong: the Act phases limits upward, so the ceiling is fixed for now, not forever.

Who actually pays more

This is where many summaries go wrong. Under both Year 3 and Year 4, an employee earning between KES 9,000 and the ceiling pays 6% of their whole pay. Raising the limits only changes what happens to pay above the old ceiling of KES 72,000.

Monthly payEmployee, Year 3Employee, Year 4Change
KES 20,000KES 1,200KES 1,200None
KES 50,000KES 3,000KES 3,000None
KES 72,000KES 4,320KES 4,320None
KES 90,000KES 4,320KES 5,400+ KES 1,080
KES 108,000KES 4,320KES 6,480+ KES 2,160
KES 150,000KES 4,320KES 6,480+ KES 2,160

Calculated by us from the published limits. The employer’s matching cost changes by the same amounts.

Correction to the deck and its draft.The final slide and the draft say take-home pay falls for anyone earning more than KES 8,000. That is not right: below KES 72,000 the deduction is the same as in Year 3. We left that slide out. Pay above KES 72,000 is where employees pay more, by up to KES 2,160 a month, and employers pay up to KES 2,160 more per such employee.

For employers, the practical step is to update payroll, budgets and contracts for staff above KES 72,000, especially anyone whose contract states a net salary. Employee deductions also show on the employment return, so see our iTax employment return guide when you file.

Employer deadline and penalties

Contributions for a month are due on or before the 9th day of the next month, according to NSSF’s employer page. February 2026 contributions, for example, were due by 9 March 2026.

Remit by the 9th
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Strict monthly deadlines govern the remittance of combined NSSF contributions. The rule: employers must remit total NSSF contributions by the 9th day of the month following the payroll month, so February 2026 deductions are due on 9 March 2026. The risk: late remittance exposes employers to statutory penalties and interest. Actionable advice: payroll teams must reconcile employee registers, contribution schedules and payment records before the 9th.

Strict monthly deadlines govern the remittance of combined NSSF contributions. The rule: employers must remit total NSSF contributions by the 9th day of the month following the payroll month, so February 2026 deductions are due on 9 March 2026. The risk: late remittance exposes employers to statutory penalties and interest. Actionable advice: payroll teams must reconcile employee registers, contribution schedules and payment records before the 9th.
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  • The rule: remit total NSSF contributions by the 9th day of the month after the payroll month. February 2026 deductions were due on 9 March 2026.
  • The risk: late remittance exposes employers to statutory penalties and interest.
  • Actionable advice: reconcile employee registers, contribution schedules and payment records before the 9th.

NSSF says late payments attract penalties but does not give the amount on that page. One law-firm summary puts it at 5% a month or part of a month. We could not confirm that figure with NSSF, so check the current penalty with NSSF directly.

Tier II and private pension schemes

Tier II contributions normally go to NSSF. An employer can apply to send Tier II to an approved private scheme instead. The contracting-out regulations cover Tier II only, require a written application at least 60 days before the intended date, and require a scheme that meets the Act’s tests and a certificate of approval. The Retirement Benefits Authority oversees that approval.

Tier II can be redirected, the obligation cannot
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Approved employers can redirect Tier II funds to registered private retirement schemes. A diagram shows total payroll deductions of Tier I plus Tier II. Tier I goes to the National Social Security Fund by default, and Tier II can go either to NSSF or to a qualifying registered scheme. A note says this alters the destination of the funds, not the financial obligation, and the employer’s matching requirement remains identical.

Approved employers can redirect Tier II funds to registered private retirement schemes. A diagram shows total payroll deductions of Tier I plus Tier II. Tier I goes to the National Social Security Fund by default, and Tier II can go either to NSSF or to a qualifying registered scheme. A note says this alters the destination of the funds, not the financial obligation, and the employer’s matching requirement remains identical.
Read this slide as text
  • Total payroll deductions (Tier I plus Tier II) go to NSSF by default.
  • Tier I always goes to NSSF.
  • Tier II can go to a qualifying registered scheme for approved employers.

This alters the destination of the funds, not the financial obligation. The employer’s matching requirement remains identical.

Do not move Tier II to a private scheme before you hold the approval. Until then, the contributions are payable to NSSF.

Frequently asked questions

What are the NSSF rates in Kenya in 2026?

From 1 February 2026, employees and employers each pay 6% of pensionable earnings. Tier I covers the first KES 9,000 and Tier II covers earnings from KES 9,001 up to KES 108,000. The maximum is KES 6,480 each, or KES 12,960 combined.

Did the NSSF rate increase in 2026?

No. The rate stayed at 6%. The lower earnings limit rose from KES 8,000 to KES 9,000 and the upper limit from KES 72,000 to KES 108,000.

How much NSSF do I pay on KES 50,000?

KES 3,000 a month: KES 540 on Tier I and KES 2,460 on Tier II. Your employer adds another KES 3,000.

Does my NSSF deduction rise if I earn less than KES 72,000?

No. Below KES 72,000 your deduction is the same as in Year 3, because it is 6% of your whole pay either way. Only earnings above KES 72,000 pay more.

What is the most NSSF I can pay?

KES 6,480 a month as an employee, with a matching KES 6,480 from your employer. Pay above KES 108,000 attracts no further contribution.

When must employers remit NSSF?

On or before the 9th day of the month after the payroll month. Late payment attracts penalties.

Can Tier II go to a private pension scheme?

Yes, for an approved employer using an approved scheme under the contracting-out regulations. It changes where Tier II goes, not the obligation to contribute. Tier I always goes to NSSF.

How we researched this guide

This is an independent, source-based guide. We checked the Year 4 limits and maximums against PwC’s and KPMG’s summaries, the 9th-day deadline against NSSF’s employer page, and the Tier II contracting-out rules against the National Social Security Fund (Contracting Out by Employers) Regulations. We recalculated every example and the Year 3 comparison ourselves, and corrected the deck’s claim about who pays more. We have not tested NSSF’s portals, and this guide has not been reviewed by a payroll professional. Contact the editor to report an error.

Sources

  1. PwC Kenya, tax alert: Year 4 NSSF rates 2026 (limits, Tier I and Tier II maximums)
  2. KPMG Kenya, Phase 4 of NSSF contribution rates, February 2026 (limits and the KES 6,480 maximum)
  3. NSSF, employer information (due on or before the 9th of the following month)
  4. The National Social Security Fund (Contracting Out by Employers) Regulations (Tier II only; 60-day application)
  5. Keldine LLP, NSSF changes 2026 (secondary source; late-payment penalty figure and who is affected)
Not legal, tax or payroll advice. This guide is general information based on published summaries of the NSSF Act, 2013 limits. NSSF rules, limits and penalties change. Confirm current figures with NSSF or a qualified Kenyan payroll or tax adviser before changing payroll.

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