NSSF Tier I vs Tier II explained (Kenya 2026)

Since the Court of Appeal upheld the NSSF Act 2013 in February 2023, every salaried worker in Kenya has been on the tiered contribution schedule. The old flat KES 200 / KES 400 is gone. Contributions now scale with your pay up to a cap that itself increases in annual steps. This guide unpacks how Tier I and Tier II work, what they fund, and how to read your NSSF statement.

How the two tiers split

The NSSF Act 2013 defines two earnings bands, each with its own contribution pot:

• Tier I covers pensionable earnings up to the Lower Earnings Limit (LEL). Contributions here stay with NSSF and go into the Pension Fund managed by the Fund.
• Tier II covers pensionable earnings in the band between the LEL and the Upper Earnings Limit (UEL). If the employer has a registered pension scheme, Tier II may be contracted out to that scheme; otherwise it also stays with NSSF.

Earnings above the UEL are outside the NSSF net entirely; any pension deduction above that band is voluntary and typically routed through a private scheme.

The Year 4 thresholds (Feb 2026 to Feb 2027)

• Lower Earnings Limit (LEL): KES 8,000
• Upper Earnings Limit (UEL): KES 72,000
• Tier I maximum employee deduction: 6% x KES 8,000 = KES 480 (with employer match, KES 960 total)
• Tier II maximum employee deduction: 6% x (72,000 - 8,000) = 6% x 64,000 = KES 3,840 (with employer match, KES 7,680 total)
• Combined maximum: KES 4,320 employee + KES 4,320 employer = KES 8,640 per month per employee earning at or above the UEL.

The Act sets a five-year phase-in from February 2023. Each February the LEL and UEL step up until Year 5 caps are reached in Feb 2027. Watch NSSF gazette notices for the Year 5 revision.

Who has to contribute

• Every employee in Kenya aged 18 to 60, whether in the formal or informal sector, at any employer of any size. The old exemption for firms under five employees was removed by the 2013 Act.
• Self-employed and voluntary members contribute at their own chosen level (minimum KES 200 / month), directly via paybill 333300 with the NSSF membership number as the account.
• Public-service employees whose pension is governed by the Public Service Superannuation Scheme (PSSS) contribute to PSSS instead; NSSF only takes Tier I in that case.

Tier II contracting-out

Employers with a Retirement Benefits Authority (RBA) registered occupational scheme can apply to NSSF for a Reference Scheme certificate to contract out Tier II contributions. The Tier II 6+6 then flows into the employer scheme instead of NSSF. Tier I is not contract-outable, ever.

1. Employer applies to NSSF with the RBA registration certificate and scheme rules.
2. NSSF issues a Reference Scheme certificate confirming the scheme meets minimum benefit standards.
3. From the effective date, monthly returns split Tier I to NSSF and Tier II to the scheme administrator.

As an employee you cannot opt in or out individually; the decision sits with the employer. What you can do is ask HR for the scheme trustee contact and check your Tier II contributions on the scheme portal.

Paying NSSF directly

Employers file the monthly return on the NSSF byproduct portal, generate a payment reference, and pay via paybill 333300 by the 9th of the following month. Self-employed members use the same paybill with their NSSF membership number as the account. See our pay NSSF via M-PESA walkthrough for the full flow.

How to check your NSSF statement

• Web: nssf.or.ke, log in with your membership number and password.
• App: NSSF Kenya (Android, iOS).
• USSD: *303#, choose Statement.
• Contributions typically post within 30 to 45 days of the month contributed; if a month is missing 60+ days after payment, raise a case with your employer first (they may not have filed the return), then with NSSF.

Related guides

• NSSF employer contribution guide
• NSSF portability when changing jobs
• NSSF benefit claim and retirement
• Voluntary NSSF Tier II top-up
• Moving NSSF Tier II to a private pension

Sources

1. National Social Security Fund Act, No. 45 of 2013.
2. Court of Appeal Judgment, Consolidated Appeals 656, 657, 658 of 2022 (3 February 2023), upholding the NSSF Act 2013.
3. NSSF Kenya rates page, nssf.or.ke, retrieved 26 August 2026. Year 4 thresholds cited above; confirm the current gazette notice before payroll cutover.
4. Retirement Benefits Authority guidance on contracting-out, rba.go.ke.

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