Introduction

The National Social Security Fund Act, No. 45 of 2013 (the "NSSF Act") transformed the NSSF from a provident fund into a mandatory national pension scheme. The Act, assented to on 24th December 2013 and commencing on 10th January 2014, introduced higher contribution levels to improve retirement benefits, invalidity benefits, and survivors' benefits.

Following legal challenges, the Court of Appeal upheld the Act's constitutionality in February 2023, enabling phased implementation over five years as prescribed in the Third Schedule of the Act.

The changes, effective 1st February 2026, represent the fourth phase of this statutory rollout. Importantly, these are not new contribution rates but an increase in the pensionable earnings limits (Lower Earnings Limit and Upper Earnings Limit). The contribution percentage remains unchanged at 6% (employee) + 6% (employer).

This is a mandatory statutory requirement under the NSSF Act, with no discretion for employers to opt out of the adjusted limits.
 

This newsletter provides a detailed overview of these changes. 

Caveat

This newsletter has been prepared by RSM (Eastern Africa) Consulting Ltd, and the views are those of the firm, independent of its directors, employees and associates. This newsletter is for general guidance, and does not constitute professional advice. Accordingly, RSM (Eastern Africa) Consulting Ltd, its directors, employees, associates and its agents accept no liability for the consequences of anyone acting, or refraining from acting, in reliance on the information contained herein or for any decision based on it. No part of the newsletter may be reproduced or published without prior written consent. RSM (Eastern Africa) Consulting Ltd is a member firm of RSM, a worldwide network of accounting and consulting firms. RSM does not offer professional services in its own name and each member firm of RSM is a legally separate and independent national firm.