Employed Kenyans will see changes in their pay starting February 1, 2026, as the National Social Security Fund (NSSF) enters the fourth year of implementing the NSSF Act, 2013.

The update does not introduce a new tax or increase the contribution rate. Instead, it expands the portion of salaries subject to mandatory pension deductions, meaning some workers will take home less.

Under the law, NSSF contributions are set at 6% of pensionable earnings, split equally between the employee and employer.

How much of your salary is pensionable depends on two benchmarks: the lower limit (Tier I) and the upper limit (Tier II), both of which rise in 2026.

Tier I (Lower Limit)

The lower limit will increase from Ksh8,000 to Ksh9,000.

This portion is compulsory, and all employers must remit it to NSSF.

A 6% contribution on Ksh9,000 equals Ksh540 from the employee, with the employer matching the same amount.

This applies to anyone earning Ksh9,000 or more.

Tier II (Upper Limit)

The upper limit jumps from Ksh72,000 to Ksh108,000, pegged at three times the national average earnings.

This raises the ceiling for NSSF deductions, meaning higher earners will contribute on a larger portion of their salaries.

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Impact on Low- and Middle-Income Earners

For employees earning Ksh15,000 or Ksh50,000, contributions remain the same because their salaries already fall within the pensionable limits.

A Ksh15,000 earner continues to contribute Ksh900 monthly, while a Ksh50,000 earner still pays Ksh3,000.

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Impact on High Earners

Employees earning Ksh80,000 currently pay Ksh4,320. From February 2026, their contribution rises to Ksh4,800, reducing take-home pay by Ksh480.

Those earning Ksh108,000 or more will see the maximum employee contribution jump to Ksh6,480, cutting net pay by Ksh2,160 each month.

Including the employer’s matching contribution, a total of Ksh12,960 will be saved monthly for retirement.

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National Treasury CS Mbadi signing an agreement of DTA between Kenya and Belgium on September 30 2025. PHOTO/ Mbadi X