Salaried Kenyans will face higher deductions as new National Social Security Fund (NSSF) rates take effect on February 1. Contributions will increase to 6% of an employee’s salary, matched by employers.
Minimum contributions will rise from Sh420 to Sh480, while employees earning Sh72,000 or more will see their payments double to Sh4,320.
The upper income limit for contributions is set to increase from Sh36,000 to Sh72,000. For instance, those earning Sh50,000 will pay Sh3,000 monthly, up from Sh2,160.
The NSSF changes, based on a 2013 law, aim to replace fixed contributions with a progressive system tied to salaries, boosting retirement savings.
President William Ruto’s administration expects the revised framework to generate Sh1 trillion by 2027, describing it as equitable and progressive. However, the increased deductions, alongside other levies like NHIF, housing, and PAYE taxes, have drawn criticism from workers and employers citing financial strain.
