Under the NSSF Act 2013 phase-in, Tier I covers pay up to KES 9,000 and Tier II covers pay from KES 9,001 to KES 108,000 from February 2026. Both employee and employer contribute 6% of pensionable pay within those limits.
KES 540 (Tier I) plus KES 5,940 (Tier II) gives KES 6,480 from the employee, matched by the employer. NSSF is deductible before PAYE, so the net cost to the employee is lower than the contribution.
General information, not professional advice. Rules change; check the sources above or ask us before acting. Last reviewed Feb 2026.
Founder of Renol Consulting. Researcher in Mineral Economics and Valuation at the University of the Witwatersrand and Lecturer in Finance and Accounting. About Remmy
How Kenyan employers calculate net pay in 2026, step by step: NSSF Year 4 limits, SHIF and the Housing Levy before tax, then PAYE bands and relief, with three salary examples.
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