NSSF Contribution Compliance – June 2026

Court of Appeal dismisses stay application; Year Four rates remain in force

On 29 May 2026, the Court of Appeal dismissed the National Social Security Fund (NSSF) Board of Trustees’ application for a stay of execution of the Employment and Labour Relations Court judgment against the NSSF Act, 2013. Despite the pending appeal, NSSF has confirmed that the Act remains operational and the Year Four contribution cycle continues to apply.

Key Highlights

• Contribution rates unchanged: 6% employee + 6% employer.
• Maximum monthly contribution: KES 11,880 (KES 5,940 each).
• Year Four framework: Lower Earnings Limit – KES 9,000; Upper Earnings Limit – KES 108,000.
• No reversion: Employers should disregard suggestions of reverting to the old KES 200 regime.
• Compliance required: Employers must continue deducting and remitting contributions to protect employee benefits and avoid penalties.

What Employers Should Do

1. Apply the current Year Four rates for all payroll deductions.
2. Remit both employee and employer portions under the current framework.
3. Maintain complete payroll records and remittance evidence.
4. Do not revert to the old regime unless formally directed.
5. Monitor court rulings, legislative changes, and official NSSF communications.

The Bottom Line

The dismissed stay does not alter today’s obligations. Employers must remain compliant with the Year Four contribution cycle until further notice.

For tailored advice or assistance, please contact BDO East Africa Kenya Tax Team at kenya@bdo-ea.com or call +254 709 254 000.