The National Social Security Fund (NSSF) in Kenya has announced an upward review of the contribution rates. Starting from February 2024, employers will deduct between Sh420 and Sh1,740 from their workers’ pay-slips. The lower earnings limit has been raised to Sh7,000 from the current Sh6,000, meaning that this category of employees will now contribute Sh420 from the current Sh360. The Upper Earnings Limit has also been hiked to Sh29,000 from the current Sh18,000, meaning that most workers will contribute Sh1,740 up from Sh1,080. The new rates will remain in place until the next review in January 2025.

The new deduction plan, which began last year, will gradually increase rates over a five-year period. This shift began in 2013 when the NSSF Act came into effect, requiring six percent of workers’ salaries be deducted each month. It was expected that the new contribution rates would take effect in 2014, but that was stalled in a nearly decade-long court battle that challenged the new deductions. The Court of Appeal, however, gave the green light for the new deductions in a judgment delivered in September 2022.