Kenyan workers are set to take home smaller pay packets from February 2026 as higher National Social Security Fund (NSSF) contributions come into effect.
This will mark the fourth year of phased increases under the NSSF Act of 2013, a reform the government says is aimed at strengthening retirement savings.
Under the new rates, employees earning more than KSh 100,000 will see their monthly NSSF deductions rise from KSh 4,320 to KSh 6,489. This translates to an additional KSh 2,160 compared to current contributions.
However, workers earning below KSh 50,000 will not be affected by the fourth phase of the implementation.
The steady rise in deductions comes at a time when many workers say their salaries have remained unchanged despite a high cost of living.
Contributions that stood at just KSh 200 in 2022 have risen sharply over the years, reaching KSh 4,320 in 2025 for top earners.
According to the Retirement Benefits Authority (RBA), the increased rates have significantly boosted collections.
Annual NSSF contributions grew from KSh 19.29 billion in mid-2022 to KSh 83.97 billion a year later. The regulator projects that total contributions will exceed KSh 100 billion in 2026, driven largely by the higher mandatory rates.
Employers are also feeling the pressure. Since they are required to match employee contributions, the reforms have raised the overall cost of doing business, particularly for firms with large workforces.
President William Ruto has defended the changes, arguing that contributions should reflect actual earnings rather than a flat rate.
He previously dismissed the old KSh 200 contribution as inadequate for meaningful retirement savings.
Trade unions, led by COTU secretary-general Francis Atwoli, have backed the reforms, saying they promote a stronger savings culture and wider social protection, including for workers in the informal sector.
As 2026 approaches, the debate continues over balancing long-term retirement security with the immediate financial strain on Kenyan households.
