The Kenyan government is planning to implement additional salary deductions starting February 2025.

This includes an increase in contributions to the National Social Security Fund (NSSF) as part of the phased implementation of the NSSF Act of 2013.

The new deductions will see employees and employers each contributing up to Ksh4,320 monthly, a significant increase from the current Ksh2,160.

The National Social Security Fund (NSSF) Act No. 45 of 2013 was enacted to provide social security benefits to workers in Kenya, including retirement, survivor, and invalidity benefits.

The Act increased the contribution rates from a standard rate of Ksh200 matched by another Ksh200 from the employer, amounting to a total contribution of Ksh400, to 12% of an employee’s pensionable wages/salaries, with 6% deducted from the employee and another 6% matched by the employer

The Act mandates a 12% contribution of an employee’s pensionable wages, split equally between the employee and the employer, with each contributing 6%.

The current contribution rate is Ksh2,160, but with the new rates, the contributions will be doubled to Ksh4,320 for employees earning above Ksh18,000. This change aims to align contributions with modern economic realities and inflation, ensuring that workers have adequate savings for their retirement