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Year 4 NSSF Rates – Effective February 2026

The National Social Security Fund (NSSF) Act No. 45 of 2013, enters Year 4 of its phased implementation following the multi-year progression of pension contribution limits linked to the Lower Earnings Limit (LEL) and Upper Earnings Limit (UEL) that began in February 2023.

The year 2026 marks the final year of this four-year transition under the NSSF Act.  From 2027 onward, any changes to contribution thresholds will be determined through Gazette Notices issued by the Cabinet Secretary for Labour and Social Protection.

Year 4 Contribution structure

Employers and employees will each contribute 6% of the employees’ monthly pensionable earnings to the NSSF.

Effective 01 February 2026, the contributions will be as follows:

• Lower Earnings Limit (LEL): KES 9,000
• Upper Earnings Limit (UEL): KES 108,000 

Lower Limit (Tier 1) – KES 9,000

Upper Limit (Tier 2) – KES 108,000 – 6% of (UEL – LEL)

KES 108,000 – KES 9,000 = KES 99,000 

What these changes mean for employers 

1. Payroll updates required: Payroll systems must be updated to reflect the new LEL and UEL to ensure accurate contribution calculations.
2. Increase in employer pension costs: Employers should budget for higher pension contributions beginning February 2026.
3. Strengthened recordkeeping requirements: Employers should maintain accurate pensionable pay, contribution summaries, and remittance records for compliance.
4. Contracting-out options: Employers may channel Tier II contributions to an RBA registered private pension scheme provided they notify the RBA at least 60 days before migration. 

What these changes mean for employees

1. Higher retirement savings: Increased contributions directly build stronger long-term pension benefits.
2. Reduced takehome pay: Employees may experience a modest monthly net pay reduction.
3. Tax deduction advantage: Contributions remain within the tax‑deductible pension limit, currently up to KES 30,000 per month 

Conclusion

With the introduction of the Year 4 thresholds, the phased transition originally set out under the NSSF Act comes to an end. The LEL will have increased from KES 6,000 in 2023 to KES 9,000 in 2026 while the UEL will have increased from KES 18,000 to 108,000. From 2027 onward, future adjustments to NSSF contribution limits will be effected through Gazette Notices issued by the Cabinet Secretary for Labour and Social Protection.