Kenya Payroll Changes - 2026

Rate/Percentage changes affecting payroll

• NSSF contribution increase (effective February 2026)
  • New maximum contribution: Increases to Ksh 6,480 (up from Ksh 4,320) for both employee and employer.
  • Reason: This marks the 4th year of implementation of the NSSF Act 2013.
  • Calculation basis:
    • The lower earnings limit (tier 1) is scheduled to increase to Ksh 9,000.
    • The upper earnings limit (tier 2) is scheduled to increase to three times the national average earnings (approx. Ksh 108,000).
  • Note: While these figures are based on the Act's schedule, the final specific rates are subject to official publication and confirmation by the NSSF prior to the effective date.

Other payroll-impacting changes

• NSSF Act 2013
• The Act mandates a progressive increase in contribution rates over a five-year period, effective from February 2023.