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NSSF Rates 2026 — What Changed & How It Affects Your Salary
Updated April 2026 — HelaBora
What Changed in February 2026?
The National Social Security Fund (NSSF) Act 2013 introduced a phased increase in contributions over 5 years. Year 4 kicked in on 1 February 2026.
Year 4 Rates (Current)
| Tier | Pensionable Pay Range | Employee Rate | Max Employee Contribution |
|---|---|---|---|
| Tier I | First KES 9,000 | 6% | KES 540 |
| Tier II | KES 9,001 — 108,000 | 6% | KES 5,940 |
| Total | KES 6,480/month max |
Your employer matches this exactly (another KES 6,480), so total NSSF = KES 12,960/month.
How This Compares to Previous Years
| Year | Lower Limit | Upper Limit | Max Employee Contribution | Change |
|---|---|---|---|---|
| Year 1 (2023) | KES 6,000 | KES 18,000 | KES 1,080 | — |
| Year 2 (2024) | KES 7,000 | KES 36,000 | KES 2,160 | +KES 1,080 |
| Year 3 (2025) | KES 8,000 | KES 72,000 | KES 4,320 | +KES 2,160 |
| Year 4 (2026) | KES 9,000 | KES 108,000 | KES 6,480 | +KES 2,160 |
| Year 5 (2027) | KES 10,000 | KES 144,000 | KES 8,640 | +KES 2,160 |
Impact on Your Take-Home Pay
If you earn KES 100,000 gross salary: - 2025 NSSF deduction: KES 4,320/month - 2026 NSSF deduction: KES 5,940/month - Reduction in take-home: KES 1,620/month (KES 19,440/year)
The silver lining: NSSF is tax-deductible, so your taxable income decreases, partially offsetting the higher contribution.
Is NSSF Worth It?
NSSF is a mandatory retirement savings scheme. While the returns have historically been modest (~2-4% real return), the employer matching effectively doubles your contribution. KES 6,480/month from you + KES 6,480/month from your employer = KES 12,960/month invested for your retirement.
Over 30 years at even a modest 5% return, this grows to approximately KES 10.8 million — entirely from mandatory deductions.
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Frequently Asked Questions
What is the NSSF contribution rate for 2026?
Employee NSSF rate is 6% of pensionable pay. Tier I covers the first KES 9,000, Tier II covers KES 9,001–108,000. Maximum employee contribution is KES 6,480/month. Employer matches with equal amount.
When did NSSF Year 4 start?
NSSF Year 4 started on 1 February 2026. The lower earnings limit increased to KES 9,000 and upper earnings limit to KES 108,000.
How much less will I take home due to NSSF 2026?
If you earn KES 100,000/month, your take-home pay decreased by KES 1,620/month compared to 2025. The impact is partially offset by lower PAYE tax since NSSF is tax-deductible.