Kenya NSSF Contribution Increase

Kenya payroll

The NSSF Act No. 45 of 2013 and Article 43 of the Kenya Constitution mandates the National Social Security Fund (NSSF) to provide social security to all workers in Kenya. This is therefore to notify all Employers, effective February 2024 payroll, of the NSSF Contribution Rates for the Second Year as indicated in the link below.

Remittances to the Fund should be made by the 9th day of each subsequent month.

Click here to access the Notice to Employers.

NSSF Rates Update 

The new NSSF rates are effective 1 February 2024:

  January 2024 February 2024
Lower Limit (Tier 1) 6000.00 7000.00
Employee Contribution (NSSFEE1) 360.00 420.00
Employer Contribution (NSSFER1) 360.00 420.00
Total Tier 1 NSSF Contribution 720.00 840.00
Upper Limit (Tier 2) 18 000.00 36 000.00
Upper Limit minus Lower Limit 12 000.00 29 000.00
Employee Contribution (NSSFEE2) 720.00 1 740.00
Employer Contribution (NSSFER2) 720.00 1 740.00
Total Tier 2 NSSF Contribution 1 440.00 3 480.00
Total NSSF Contributions 2 160.00 4 320.00

Impact of the Kenya NSSF Contribution Increase on PaySpace

  • Kenya payrolls will automatically recalculate when the February run is opened.
  • If the February run is already open at the time of release, customers are advised to recalculate.
  • The new rates will only be effective 1 February 2024.
  • Other statutory updates announced include the new interest rates. Please refer to the Compliance News article on PaySpace Wisdom (How can we help? > PaySpace Wisdom > Compliance News > Kenya – Fringe Benefit Tax, Deemed Interest Rate and Low Interest Benefit 2024) and release note #47738 for more detail.

Should you have any questions regarding the Kenya NSSF Contribution Increase, please feel free to visit our Support page for more ways to get in touch, or email us at [email protected]

The PaySpace Team