Mandatory contributions to the National Social Security Fund (NSSF) are set to to increase from February 2026. The mandatory NSSF contributions will see payslips weaken by as much as Sh1,512, which will be the highest extra amount that some workers will have to pay.
This increase in the mandatory NSSF contributions will mark the fourth year in which the contributions have gone up. In 2022, the contributions increased to a maximum of Sh1,080 from Sh200. They then went up to Sh4,320 and will now have a maximum of Sh6,480.
“Contributions to NSSF have been on a steady growth over the last three years. The increase in contributions is attributed to the continued implementation of the NSSF Act 2013,” the Retirement Benefits Authority states.
For instance, annual contributions to the NSSF increased by Sh64.68 billion from SH19.29 billion in the financial year to June 2022.
In the new increases, employees earning less than Sh50,000 will not be affected . However, employees earning above Sh100,000 will now pay Sh6,480 to the NSSF. These employees have been paying Sh4,320 per month, marking a difference of about Sh2,160.
However, the actual amount that will be lost on the payslip will be Sh1,512 instead of Sh2,160. This is because the NSSF is a tax-deductible expenses that workers subtract from their gross pay to reduce the income that is subject to taxation.
Kenyan workers earning a salary of Sh25,000 will have to pay Sh1,500 under the new NSSF rates. Those earning Sh35,000 will cough up Sh2,100 while those in the Sh50,000 category will pay Sh3,000.
Workers earning Sh75,000 will have new NSSF rates of Sh4,500 while those earning Sh100,000 will have new rates of Sh6,000. Those in the Sh200,000 category to Sh1 million category will have new rates of Sh6,480 per month.
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