Tax Alert: Updated Kenya NSSF Contributions Effective Feb. 2023

Tax Alert: Updated Kenya NSSF Contributions Effective Feb. 2023

There have been legal impediments since the National Social Security Fund (NSSF) Act No. 45 of 2013 (“the Act”) was enacted in Dec. 2013, giving rise to new NSSF rates.

In Feb. 2023, the Court of Appeal found that The Employment and Labour Relations Court (ELRC) erred in pronouncing the Act illegal. It determined that ELRC had no authority to do so, as that was a preserve of the High Court. Consequently, the Act is now legal, allowing the government to enforce it.

The updated NSSF rates will take effect from the payroll month of February 2023.

There will be a lower earnings limit (LEL) for employees who make less than KES. 6,000, with an upper earnings limit (UEL) for employees who earn KES. 18,000 or above.

The monthly matching contributions by both employees and employers will rise from the current KES. 400 to 12% of a worker’s monthly pensionable income (6% from the employee and 6% from the employer – both contributing an equal amount), with a maximum contribution of KES. 2,160 for workers earning more than KES. 18,000 per month. Employee contributions will still be drawn directly from their salaries and wages while employer contributions will still come directly from the employer.

Contributions relating to the earnings below the LEL of the earnings (a maximum of KES. 720) will be credited to what will be known as a Tier I account while the balance of the contribution for earnings between the LEL and the UEL (up to a maximum of KES 1,440) will be credited to what will be known as a Tier II account.

Sample computations are indicated in the following document:

Tax Alert - Updated Kenya NSSF Contributions Effective Feb. 2023
Robert Ndegwa

Robert is a Tax & Business Advisor at Anchinga & Associates.

    Posted at 2:04 pm, March 8, 2023

    I cant do my monthly returns
    help submit my byproduct

  • Timothy W. Simiyu
    Posted at 5:19 pm, March 10, 2023

    Am self employed,how much do I pay? I also do not understand the % as explained help me out

  • Mercy
    Posted at 3:15 pm, March 21, 2023

    we have been paying 360 employer 360 employee what will be the new rates?please assist

  • Jefleys Aluso
    Posted at 11:40 am, March 30, 2023

    If I am paid a salary of 11700 per month,how much will nssf deduct me

  • Mary Ogur
    Posted at 6:35 pm, April 1, 2023

    My employer has not been paying my nssf without my knowledge,3 years down the line,I just realized recently.

    Is there anything that can be done about it,and it’s not only me but all the employees for the company

  • George maina
    Posted at 1:11 pm, April 5, 2023

    I have 6 employees earning as follows: 9k,14k,21k,16k,10k and 16k. What should be the total contribution

  • shivraj
    Posted at 3:11 pm, June 6, 2023


    I have staffs whom i have deducted 200 as old rate in the month on February, March and April and in the month of May i have deducted the new rate of 6%.

    kindly advise the procedure for the Top UP payment for February, March and April .



Post a Comment