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2026 KRA rates · instant
From 1 February 2026, NSSF deductions in Kenya went up. As part of the phased rollout of the NSSF Act, 2013, both the Lower and Upper Earnings Limits increased, so anyone earning above KES 9,000 a month now contributes more, even though the contribution rate itself is unchanged at 6%. This guide breaks down exactly what changed, the 2026 rates, how to calculate your contribution, and what it means for your take-home pay.
What changed in February 2026 (NSSF Phase 4)
The contribution rate stayed at 6% for both the employee and the employer. What changed are the earnings bands that the 6% applies to:
- The Lower Earnings Limit (LEL) rose from KES 8,000 to KES 9,000.
- The Upper Earnings Limit (UEL) rose from KES 72,000 to KES 108,000.
Because the 6% now applies to a wider band of pay, the maximum employee deduction increased from KES 4,320 to KES 6,480 per month. Your employer matches whatever you pay, so the combined contribution can be as high as KES 12,960 a month.
NSSF rates in Kenya for 2026
NSSF contributions are split into two tiers. Tier I covers the first slice of your pensionable pay and Tier II covers the rest, up to the upper limit. Both are charged at 6%.
| Tier | Pensionable pay band | Rate | Max employee | Max employer | Max total |
|---|---|---|---|---|---|
| Tier I | First KES 9,000 | 6% | KES 540 | KES 540 | KES 1,080 |
| Tier II | KES 9,001 to 108,000 | 6% | KES 5,940 | KES 5,940 | KES 11,880 |
| Total | Up to KES 108,000 | 6% | KES 6,480 | KES 6,480 | KES 12,960 |
How to calculate your NSSF contribution
The maths is straightforward: your NSSF deduction is 6% of your pensionable pay, up to a maximum pensionable amount of KES 108,000. Once you earn KES 108,000 or more, the employee deduction is capped at KES 6,480 and does not rise any further.
The table below shows the monthly employee deduction at common salary levels, with the Tier I and Tier II split.
| Monthly gross | Tier I (6% of first 9,000) | Tier II (6% of the rest) | Total employee NSSF |
|---|---|---|---|
| KES 20,000 | KES 540 | KES 660 | KES 1,200 |
| KES 30,000 | KES 540 | KES 1,260 | KES 1,800 |
| KES 50,000 | KES 540 | KES 2,460 | KES 3,000 |
| KES 75,000 | KES 540 | KES 3,960 | KES 4,500 |
| KES 100,000 | KES 540 | KES 5,460 | KES 6,000 |
| KES 108,000 and above | KES 540 | KES 5,940 | KES 6,480 (capped) |
How NSSF has changed: Phase 3 vs Phase 4
The February 2026 increase is the move from Phase 3 to Phase 4 of the NSSF Act. The rate did not change in either phase; only the earnings limits did.
| Period | Lower limit | Upper limit | Max employee | Max employer | Combined max |
|---|---|---|---|---|---|
| Phase 3 (Feb 2025 to Jan 2026) | KES 8,000 | KES 72,000 | KES 4,320 | KES 4,320 | KES 8,640 |
| Phase 4 (from Feb 2026) | KES 9,000 | KES 108,000 | KES 6,480 | KES 6,480 | KES 12,960 |
How the new rates affect your take-home pay
If you earn KES 9,000 or less, your contribution does not change. Between KES 9,000 and KES 108,000 your deduction rises modestly, and the biggest impact is on higher earners. Someone on KES 100,000 a month now pays KES 6,000 in NSSF, compared with the previous cap of KES 4,320, an increase of about KES 1,680 a month.
The good news is that NSSF is an allowable deduction for PAYE, meaning it reduces your taxable income before income tax is worked out. So part of the higher NSSF deduction is offset by slightly lower PAYE. To see your exact new net pay with the 2026 rates applied, use the Kenya PAYE calculator, or view a ready-made breakdown such as the take-home pay on KES 100,000.
Who has to contribute?
NSSF is mandatory for all employees in Kenya, regardless of whether they are permanent, contract, casual or part-time, and for their employers. Contributions are based on pensionable pay, which is your regular monthly earnings. Self-employed people and informal-sector workers are not required to contribute but can join voluntarily to build a retirement benefit.
Employer obligations, deadlines and penalties
Employers carry the responsibility for getting NSSF right. Each month an employer must:
- Deduct the employee's 6% share from their pay.
- Add the matching 6% employer contribution.
- Remit the combined amount to NSSF by the 9th of the following month through the NSSF employer portal.
Late payment attracts a penalty of 5% of the unpaid contribution for each month (or part of a month) that it remains outstanding, so it pays to remit on time. Employers should also make sure their payroll system was updated for the new limits from the February 2026 payroll run onwards.
What you get for your contributions
NSSF is a retirement savings and social-security scheme. Your contributions go towards a retirement (old age) pension, with additional cover for invalidity, survivors' benefits for dependants, and a funeral grant. Because Tier II savings are earnings-related, the higher 2026 limits also mean a larger benefit pot over time for those contributing above the old ceiling.
Frequently asked questions
What is the maximum NSSF deduction in 2026?
KES 6,480 per month for the employee, matched by KES 6,480 from the employer (KES 12,960 combined). You reach this maximum once your pensionable pay is KES 108,000 or more.
Did the NSSF contribution rate change in 2026?
No. The rate is still 6% each for employee and employer. Only the earnings limits changed: the Lower Earnings Limit rose to KES 9,000 and the Upper Earnings Limit to KES 108,000.
Is NSSF deducted before or after PAYE?
Before. NSSF is an allowable deduction that reduces your taxable income, so it is taken into account before PAYE is calculated. This is why a higher NSSF deduction slightly lowers your PAYE.
When did the new NSSF rates take effect?
From the February 2026 payroll period, i.e. 1 February 2026.
I earn less than KES 9,000. Does anything change for me?
No. Your contribution is still 6% of your actual pay, and the change to the upper limit does not affect you.
The figures above are applied automatically in our Kenya PAYE calculator, alongside SHIF, the Affordable Housing Levy and PAYE. For a wider view of the 2026 statutory changes, see our SHIF and NSSF changes guide.