Starting February 1, 2026, formally employed Kenyans will notice a slight dip in their take-home pay due to adjustments in National Social Security Fund (NSSF) contributions.
The changes stem from the ongoing rollout of the NSSF Act, 2013, expanding the salary bands subject to deductions without raising the contribution rate itself.
The rate stays at 6% of pensionable earnings, split equally between employee and employer (3% each). The key shifts are in the limits:
Tier 1 (Lower Band): Rises from Sh8,000 to Sh9,000. Anyone earning at least Sh9,000 will see a minimum deduction of Sh540 from their side (plus Sh540 from employer).
Tier 2 (Upper Band): Jumps significantly from Sh72,000 to Sh108,000 now pegged at three times the national average earnings.
Low- and middle-income earners face minimal impact. For example: On Sh15,000 salary, deduction remains Sh900 and on Sh50,000, still Sh3,000.
Higher earners feel it more. Someone on Sh80,000 sees their deduction climb from Sh4,320 to Sh4,800, losing an extra Sh480 monthly. At Sh108,000 or above, it rises from Sh4,320 to Sh6,480, meaning Sh2,160 less take-home (though total contributions, including employer’s share, hit Sh12,960 for better retirement savings).
The move aims to boost long-term security for retirees amid Kenya’s aging population and informal sector challenges. Critics argue it adds pressure on already stretched salaries without immediate benefits.
Employers must comply, with penalties for non-remittance. Workers can check payslips closely from February.
