The National Social Security Fund (NSSF) is Kenya’s statutory pension scheme, into which employers and employees each contribute 6% of pensionable pay within set limits. For a UK business running Kenyan payroll, NSSF is one of four monthly statutory items, sitting alongside PAYE, SHIF and the Affordable Housing Levy, and all four share a single deadline. This guide covers the 2025 Tier I and Tier II rates and limits, the employer’s duties and the remittance process. For the full payroll picture, see the PAYE compliance guide.
Key Facts
| Item | Position (2025) |
|---|---|
| Scheme | National Social Security Fund (NSSF) |
| Legal basis | NSSF Act 2013 (third phase, from Feb 2025) |
| Employee rate | 6% of pensionable pay |
| Employer rate | 6% of pensionable pay |
| Lower earnings limit | KES 8,000 |
| Upper earnings limit | KES 72,000 |
| Tier I maximum | KES 480 each side |
| Tier II maximum | KES 3,840 each side |
| Total maximum | KES 4,320 each side per month |
| Remittance deadline | 9th of the following month |
Key terms
- NSSF
- The National Social Security Fund, Kenya's statutory pension scheme funded by matched employer and employee contributions.
- Tier I
- Contributions on pensionable pay up to the lower limit of KES 8,000, capped at KES 480 each side.
- Tier II
- Contributions on pensionable pay between KES 8,001 and the upper limit of KES 72,000, capped at KES 3,840 each side.
The 2025 rates and limits
Answer: From February 2025, NSSF runs on a lower limit of KES 8,000 and an upper limit of KES 72,000, with employer and employee each paying 6%, capped at KES 4,320 a month each.
The current rates reflect the third phase of the NSSF Act 2013, which raised the upper earnings limit and so increased the maximum contribution. The structure splits into two tiers:
| Tier | Pay band (KES) | Rate | Maximum each side (KES) |
|---|---|---|---|
| Tier I | First 8,000 | 6% | 480 |
| Tier II | 8,001 to 72,000 | 6% | 3,840 |
| Total | Up to 72,000 | 6% | 4,320 |
An employee earning at or above KES 72,000 a month therefore has KES 4,320 deducted, and the employer matches it with another KES 4,320. Below the upper limit, contributions are simply 6% of pensionable pay split across the two tiers.
Employer duties
Answer: The employer must register, deduct the employee’s 6%, add the matching employer 6%, and remit both shares to NSSF on time.
In practice the obligations are:
- Register the business and its employees with NSSF.
- Deduct the employee contribution from monthly pay, up to KES 4,320.
- Contribute the matching employer share, up to KES 4,320.
- Remit both shares by the 9th of the following month.
- Keep records so amounts reconcile with payroll and annual statements.
These duties run in parallel with the other statutory items. The health contribution is now SHIF at 2.75% of gross, which replaced NHIF in October 2024, and the Affordable Housing Levy adds 1.5% from each side. Missing the deadline on any of them attracts penalties.
Remittance and timing
Answer: NSSF is remitted by the 9th of the month after the payroll month, the same deadline as PAYE, SHIF and the Housing Levy.
Aligning all four items to one deadline simplifies the calendar but raises the stakes for a single late run. Reliable payroll software or a provider that guarantees the filing schedule is the practical safeguard. Where a UK firm uses an Employer of Record, the EOR registers with NSSF and operates the deductions and remittances on the firm’s behalf, which also helps manage Permanent Establishment risk.
NSSF in the cost picture
Answer: NSSF on-costs are modest by UK standards because the employer share is capped.
For a mid-level professional earning KES 150,000 a month, the employer adds NSSF KES 4,320 plus the Housing Levy KES 2,250, about KES 6,570 in total, or roughly 4.4% on top of gross. That compares with UK employer National Insurance at 15%, partly because NSSF is capped and Kenya has no broad employer payroll tax. This contained on-cost is one reason the fully loaded saving on a Kenyan role lands in the range set out in our costs overview.
Key Takeaways
- From February 2025, NSSF uses an KES 8,000 lower limit and a KES 72,000 upper limit.
- Employer and employee each pay 6%, capped at KES 4,320 a month each (KES 480 Tier I plus KES 3,840 Tier II).
- NSSF is remitted by the 9th of the following month, the same deadline as PAYE, SHIF and the Housing Levy.
- Employer on-costs are around 4.4% on a mid-level salary, well below UK employer National Insurance at 15%.
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Frequently Asked Questions
What are the NSSF contribution rates in 2025?
From February 2025, the lower earnings limit is KES 8,000 and the upper limit is KES 72,000. Employee and employer each contribute 6%, to a maximum of KES 4,320 per month each, made up of KES 480 in Tier I and KES 3,840 in Tier II.
What is the difference between Tier I and Tier II NSSF?
Tier I is 6% of pay up to the lower limit of KES 8,000, a maximum of KES 480 each side. Tier II is 6% of pay between KES 8,001 and the upper limit of KES 72,000, a maximum of KES 3,840 each side.
When must NSSF be remitted?
By the 9th of the month following the payroll month, the same deadline as PAYE, SHIF and the Affordable Housing Levy. The employer deducts the employee share and pays both shares to NSSF.
How do NSSF on-costs compare with UK employer National Insurance?
They are modest. The employer NSSF cap is KES 4,320 a month. On a KES 150,000 salary, total employer on-costs including the Housing Levy are about 4.4% of gross, against UK employer National Insurance at 15%.
Sources & References
- NSSF Kenya, “New Member Contribution Rates,” accessed 2026-06-13. https://www.nssf.or.ke/new-contribution-rates
- Kenya Revenue Authority, “Pay As You Earn (PAYE),” accessed 2026-06-13. https://www.kra.go.ke/individual/filing-paying/types-of-taxes/paye
- PwC, “Kenya — Individual — Other taxes” (Worldwide Tax Summaries), accessed 2026-06-13. https://taxsummaries.pwc.com/kenya/individual/other-taxes
Published by Outsourcing.ke.
Further Reading
- PAYE in Kenya: Employer Compliance Guide — the full statutory payroll picture
- Kenya Employment Act 2007 — employment-law obligations
- Costs Overview — how on-costs feed into total savings
- Employer of Record Kenya — EOR services for UK companies expanding to Kenya