Following changes announced by President William Ruto, the monthly National Social Security Fund (NSSF) contribution is set to undergo a major adjustment.
President Ruto said Kenyans would no longer contribute a fixed Ksh200 toward NSSF every month under the previous arrangement. Instead, employers have been directed to calculate NSSF contributions based on a percentage of employees’ earnings.
According to the President, the new system will require employers to deduct 6% of employees’ salaries as NSSF contributions. The move is intended to increase the amount saved through the national pension scheme and strengthen long-term social security savings.
President Ruto described the previous fixed Ksh200 contribution as inadequate and argued that linking contributions to income would provide a more sustainable approach to building retirement savings.