Kenyan teachers will see an increase in their mandatory contributions to the National Social Security Fund (NSSF), as the Year 4 contribution rates take effect.
The changes will affect both public and private school teachers, raising their retirement savings obligations and monthly deductions.
NSSF announced new contribution rates under the Third Schedule of the NSSF Act (Cap 258), increasing the maximum monthly deduction per employee to Ksh12,960.
Tier I applies to pensionable earnings up to a prescribed lower earnings limit, while Tier II applies to earnings above that threshold, subject to an upper cap.
“The implementation of the NSSF Act is progressively being done in phases. As you are aware, according to the Third Schedule of NSSF Act Cap 258, the implementation of Year 3 contribution rates ended on 31 January, 2026. Implementation of year 4 contribution rates come to effect in February 2026. Consequently, all Employers are hereby notified to make the deductions and pay Year 4 contributions as indicated,” read part of the statement.
NSSF to Raise Teachers’ Contributions Effective February 2026
Starting in February 2026, teachers in Kenya, whether employed by the Teachers Service Commission (TSC) or in private schools, will see an increase in their NSSF contributions under the Year 4 contribution rates.
Under Tier 1, which is the Lower Earnings Limit, set at Ksh9,000, both the employed teacher and the employer will contribute 6% each, bringing the total monthly contribution to Ksh1,080.
For Tier 2, the Upper Earnings Limit is set at Ksh108,000; the 6% contribution from both the employee and the employer will increase to up to Ksh5,940 each, resulting in a total of Ksh11,880.
Combined with Tier 1, this means a maximum monthly contribution of Ksh12,960 per teacher.
Also Read: EXPLAINED: How New NSSF Deductions Will Affect Kenyan Pay Slips Starting February 2026
A Guide to Monthly Deductions for Kenyan Employees
The reforms are part of a five-year phased framework that has steadily raised mandatory pension contributions since February 2023, with the stated aim of strengthening retirement income security and expanding the coverage of formal pension savings.
Since implementation began, the earnings limits have been adjusted upward each year. In 2023, Tier I was capped at Ksh6,000 and Tier II at Ksh18,000. These rose to Ksh7,000 and Ksh36,000 respectively in 2024, before increasing again in February 2025 to Ksh8,000 for Tier I and Ksh72,000 for Tier II.
NSSF contributions remain at 12 percent of pensionable earnings, shared equally between employer and employee.
Also Read: Kenya’s Pension Hits Ksh2.21 Trillion After Hike in NSSF Deductions
The table below shows how your contributions will be calculated:
| Category | Amount (Ksh.) |
|---|---|
| Lower Earnings Limit (Tier 1) | 9,000.00 |
| Contribution on Lower Limit (6%) | 540.00 |
| Maximum Contribution by Employee | 540.00 |
| Maximum Contribution by Employer | 540.00 |
| Maximum Tier 1 NSSF Contribution (per employee) from Feb 2026 | 1,080.00 |
| Upper Earnings Limit (Tier 2) | 108,000.00 |
| Contribution on Upper Limit (6% of upper minus lower limit) | 99,000.00 |
| Maximum Contribution by Employee | 5,940.00 |
| Maximum Contribution by Employer | 5,940.00 |
| Maximum Tier 2 NSSF Contribution | 11,880.00 |
| Maximum Monthly NSSF Contribution (per employee) from Feb 2026 | 12,960.00 |
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