🕊️ Financial PlanningThe NSSF pension: contributions, tiers and how much you get
The National Social Security Fund (NSSF) is Kenya's compulsory retirement scheme. Under the NSSF Act 2013 — which finally began rolling out in February 2024 after years of court challenges — it changed from a small flat provident fund into an earnings-related pension with two tiers, and the amounts coming off pay are rising in steps each year. This guide covers how the tiers work, what you and your employer pay, and how the NSSF fits with a workplace or personal scheme.
The two tiers, the LEL and the UEL
Contributions are 6% from you and 6% from your employer, split into two tiers by your pensionable pay. Tier I is on earnings up to the Lower Earnings Limit; Tier II is on earnings between the LEL and the Upper Earnings Limit. Both limits are being raised each year of the phase-in — for the first year the LEL was KSh 7,000 and the UEL KSh 36,000 a month, and the UEL steps up sharply after that.
So an employee earning at or above the UEL pays 6% of the UEL — a few thousand shillings a month — matched by the employer. Tier I stays with the NSSF; Tier II can be 'contracted out' to an approved private scheme if your employer arranges it. Contributions are deducted before PAYE.
What you get and when
The NSSF pays a retirement benefit from age 60 (earlier — from 50 — if you have genuinely retired, are emigrating permanently, or on ill-health grounds). Money that built up under the old provident fund before 2014, plus its interest, is paid as a lump sum. The new pension-tier savings, plus the returns the NSSF credits, provide a monthly pension, part of which can be taken as cash.
Because the scheme is young and the earnings limits started low, the pension it will produce for someone retiring in the next couple of decades is modest. Check your NSSF statement online through the member portal and confirm your employer is remitting.
Why you still need a scheme on top
The NSSF is a floor, not a full retirement income. The layers on top are a workplace pension scheme (many employers run one, often with a match), an individual personal pension plan, or a retirement-focused unit trust — contributions to a registered scheme are tax-deductible up to KSh 30,000 a month (KSh 360,000 a year). Property and SACCO savings are also widely used.
Preservation matters: when you change jobs, transfer your accumulated benefits to a preservation fund or the new scheme rather than taking the cash. Use our retirement calculator to see how a monthly contribution grows by age 60.
Frequently Asked Questions
- What is the NSSF retirement age in Kenya?
- 60 for the normal retirement benefit. You can access it earlier — from 50 — if you have genuinely retired from regular employment, are emigrating permanently, or qualify on ill-health grounds.
- How much is deducted for NSSF?
- 6% of your pensionable pay from you and 6% from your employer, split into Tier I (up to the Lower Earnings Limit) and Tier II (between the LEL and the Upper Earnings Limit). Both limits are being raised in annual steps during the phase-in of the NSSF Act 2013.
- Can I deduct pension contributions from tax?
- Yes. Contributions to a registered pension or provident scheme — including the NSSF — are deductible against PAYE up to KSh 30,000 a month (KSh 360,000 a year), whichever is lower of that and 30% of your pensionable pay.
Informational content, not financial, tax or legal advice. Check amounts, limits and current rules directly with the official sources (the NSSF, the Central Bank of Kenya, the Kenya Revenue Authority, the Kenya Deposit Insurance Corporation) before making a decision.
