Understanding NSSF 2026 Contributions in Kenya
Understanding NSSF 2026 Contributions in Kenya
1. Introduction
From 1st February 2026, the NSSF contributions are changing under the NSSF Act of 2013.
The lower limit is now KSh 9,000 and the upper limit is KSh 108,000.
Contributions are divided into Tier 1 and Tier 2.
2. NSSF Contribution Structure
Tier 1 (Mandatory)
- Applies to the first KSh 9,000 of salary
- 6% of KSh 9,000 = KSh 540 (Employee) + KSh 540 (Employer)
- Total Tier 1: KSh 1,080 per month
Tier 2 (Optional)
- Applies to salary over KSh 9,000 up to KSh 108,000
- 6% of (Salary - KSh 9,000) capped at KSh 108,000
- Max Tier 2: KSh 5,940 (Employee) + KSh 5,940 (Employer)
- Total Tier 2: KSh 11,880 per month
3. How to Calculate NSSF Contributions
Tier 1 Contribution: Tier 1 = 9000 × 6% = KSh 540
Tier 2 Contribution: Tier 2 = (Gross Salary − 9,000) × 6%, maximum KSh 5,940
Example:
Gross Salary: KSh 50,000
Tier 1: KSh 540 (Employee) + KSh 540 (Employer) = KSh 1,080
Tier 2: (50,000 − 9,000) × 6% = KSh 2,460 (Employee) + KSh 2,460 (Employer) = KSh 4,920
Total NSSF Contribution: KSh 6,000
4. Contribution Limits
| Tier |
Salary Range |
Employee Contribution |
Employer Contribution |
Total Contribution |
| Tier 1 |
Up to KSh 9,000 |
KSh 540 |
KSh 540 |
KSh 1,080 |
| Tier 2 |
KSh 9,001 – KSh 108,000 |
Up to KSh 5,940 |
Up to KSh 5,940 |
Up to KSh 11,880 |
5. Notes & Compliance
- Tier 1 is mandatory and paid to NSSF.
- Tier 2 is optional and can go to NSSF or an approved pension scheme.
- Maximum salary for contributions is capped at KSh 108,000.
6. Conclusion
Understanding the new NSSF rates helps you plan for higher contributions and secure your retirement.
