Following the Court of Appeal decision on February 3, 2023, which upheld the National Social Security Fund (NSSF) Act No. 45 of 2013, the NSSF has issued a press release on February 9, 2023, requiring all employers to comply with the updated contribution rates immediately.

The contribution rate is set at 12% of pensionable earnings, divided equally between the employee and the employer, with each contributing 6%. For employees earning KES 18,000 and above, there is a ceiling limit of KES 2,160. This means the employee will contribute KES 1,080, which will be matched by an equal contribution from the employer.

Employers who have already processed their February 2023 payrolls will need to revise them to incorporate these changes and ensure the NSSF contributions are remitted by March 9, 2023.