Navigating the National Social Security Fund NSSF landscape in Kenya has become more complex in 2026. As the fourth phase of the NSSF Act 2013 takes effect this February, both employers and employees are seeing a significant adjustment in mandatory pension contributions. Understanding these new tiers and strict timelines is essential for maintaining compliance and avoiding costly penalties.
Here is the essential breakdown of the 2026 NSSF rates and remittance rules.
New Contribution Rates for 2026
Effective February 2026, the pensionable earnings limits have been adjusted upward. While the contribution rate remains at 12 percent of gross salary (split equally as 6 percent from the employee and 6 percent from the employer), the salary cap subject to these deductions has increased.
-
Tier I (Lower Earnings Limit): This has risen to 9,000 KES. The mandatory contribution for this tier is 540 KES from the employee, matched by 540 KES from the employer, totaling 1,080 KES.
-
Tier II (Upper Earnings Limit): The ceiling has increased to 108,000 KES. For employees earning above the lower limit, 6 percent is applied to the difference between their salary (up to the cap) and the Tier I limit.
-
The New Maximum: For high earners (108,000 KES and above), the total monthly deduction is now 6,480 KES for the employee, which is matched by the employer for a total monthly saving of 12,960 KES.
Critical Deadlines and Penalties
The Kenya Revenue Authority and NSSF have streamlined enforcement through digital integration, making timely remittance more important than ever.
-
Monthly Deadline: All NSSF contributions must be remitted by the 9th day of the following month. For example, February contributions must be paid by March 9th.
-
Late Payment Penalty: Failing to meet this deadline attracts a penalty of 5 percent of the total contributions due for every month or part of a month that the payment remains outstanding.
-
Payment Methods: Payments are primarily processed through the government unified gateway, often requiring a payment reference generated via the employer portal or eCitizen.
Impact on Payroll Management
For businesses, these changes mean an immediate increase in direct labor costs. It is vital to update your payroll systems before the February cycle to ensure that the correct Tier I and Tier II splits are calculated. Employers also have the option, subject to approval, to channel Tier II contributions into private pension schemes, which may offer different investment advantages for their staff.
Get Expert Help Today
With the 2026 shifts now in full effect, manual payroll is no longer a viable option for staying compliant. FaidiHR provides a robust, automated platform that is already updated with the latest NSSF 2026 rates, ensuring your business stays on the right side of the law without the administrative burden.
Call 254 702 339 699 or Email sales@faidihr.com to automate your payroll compliance today.