President William Ruto has announced changes to Kenya’s National Social Security Fund (NSSF) contribution system, with workers’ payments being linked to their earnings instead of the previous fixed contribution.
The new arrangement is designed to make retirement savings correspond to employees’ salaries. Under the system outlined by Ruto, employees contribute 6 per cent of their pensionable earnings, while employers provide a matching 6 per cent contribution.
The change represents a major shift from the earlier KSh200 monthly employee contribution that applied under the previous system. The graduated contribution structure has been introduced progressively under the NSSF Act, with contribution levels increasing according to pensionable earnings.
Ruto has previously argued that higher contributions are necessary to strengthen workers’ retirement savings and increase the country’s overall savings. In June 2026, he said the government and employee representatives had agreed on the 6 per cent employee contribution, matched by another 6 per cent from employers.
The changes have significant implications for salaried workers because the amount deducted from their monthly pay will depend on their pensionable earnings. Employees earning more will generally have larger deductions than those on lower salaries.
At the same time, the increased contributions mean more money is being set aside for workers’ retirement. The NSSF reported that its maximum monthly contribution under the 2026 rates can reach KSh12,960 when employee and employer contributions are combined.
The contribution system has also been subject to legal disputes, with different parties taking positions on the applicable rates and the status of the NSSF Act.
For employees, the key issue remains how the deductions will affect their monthly take-home pay and long-term retirement savings.