NSSF Rates Increased Again: What You'll Pay in 2026
NSSF contributions went up this month. If you're earning above 72,000 KES, you're now paying more. Here's what changed and what to do.
NSSF contributions went up this month, the biggest jump since the tiered system started. If you’re earning above 72,000 KES, you’re now paying more each month.
Here’s what changed, what it costs you, and what to do before your next payroll run.
What Changed
The new NSSF rates kicked in February 1, 2026:
- Tier I Lower Limit: 8,000 KES → 9,000 KES
- Tier II Upper Limit: 72,000 KES → 108,000 KES
- Contribution Rate: 6% employee + 6% employer (unchanged)
The limits went up, which means higher contributions for anyone earning above 72,000 KES (the old Tier II cap).
What This Actually Costs You
Forget the percentages. Here’s what gets deducted from your payslip each month:
| Salary | Old NSSF | New NSSF | Change |
|---|---|---|---|
| 25,000 KES | 1,500 KES | 1,500 KES | 0 |
| 35,000 KES | 2,100 KES | 2,100 KES | 0 |
| 50,000 KES | 3,000 KES | 3,000 KES | 0 |
| 75,000 KES | 4,320 KES | 4,500 KES | +180 KES |
| 100,000 KES | 4,320 KES | 6,000 KES | +1,680 KES |
| 200,000 KES+ | 4,320 KES | 6,480 KES (cap) | +2,160 KES |
Your employer pays the same amount on top of this.
Calculate for Your Team
Employee contribution only. Your employer matches this amount.
Who Gets Hit Hardest
If you’re earning 72,000-108,000 KES, you’re seeing the biggest increases. Below 72k, contributions were already capped under the old system. Above 108k, they’re capped under the new system.
The middle is where it hurts.
What To Do Before Next Payroll
If You’re Using Spreadsheets
- Update formulas with new Tier I (9,000 KES) and Tier II (108,000 KES)
- Recalculate NSSF for each employee manually
- Test with one employee before running full payroll
- Update your monthly budget to account for higher costs
- Inform your team about the deduction increase
Time needed: 2-3 hours (and you’ll do this again when rates change next year)
If You’re Using Payroll Software
- Check that your system updated to February 2026 rates
- Run a test payroll for one employee
- Verify NSSF calculations match the new tiers
- Contact support immediately if calculations look wrong
- Inform employees about the change
Time needed: 30 minutes
If You’re Using Kazisafi
Nothing. Rates are already updated. Run payroll as usual.
Time needed: 0 minutes
Why This Shouldn’t Be Your Problem
Every time NSSF, SHIF, PAYE, or Housing Levy rates change, someone has to update spreadsheets or call support. That’s the point of payroll software, it should handle compliance even when regulations change unexpectedly.
Kazisafi updates rates automatically the day they change. You run payroll like normal.