The Kenyan worker is under siege. Already battered by the housing levy, increased health insurance deductions, and soaring inflation, salaried employees are staring at yet another raid on their wallets. Effective February 1, 2026, the implementation of the NSSF Act 2013 enters its fourth year, triggering a scheduled hike in pension contributions that will leave "more holes in the payslip."

Under the graduated scale, the Upper Earnings Limit (Tier II) will rise sharply from KSh 72,000 to KSh 108,000. This means for workers earning KSh 108,000 and above, the monthly deduction will jump, matched dollar-for-dollar by employers who are also groaning under the weight of doing business. The promise of a comfortable retirement feels like a cruel joke to workers struggling to survive the month.

The Mathematics of Misery

"It is death by a thousand cuts," says Jane Mwangi, a mid-level manager in Nairobi. "They take for housing, they take for health, they take for pension. What is left for food?" The new rates dictate that the Lower Earnings Limit (Tier I) moves to KSh 9,000, while the Upper Limit hits KSh 108,000. For top earners, the maximum monthly contribution will now rise significantly, reducing disposable income at a time when purchasing power is already at rock bottom.

• Employer Burden: It is not just employees who are bleeding. Employers, required to match these contributions, are facing a spike in payroll costs. This creates a disincentive for hiring and raises the specter of layoffs as companies try to balance their books. The Federation of Kenya Employers (FKE) has warned that these cumulative costs are making Kenyan labor uncompetitive in the region.
• Trust Deficit: The bitter pill is harder to swallow given the NSSF’s history of graft and mismanagement. Workers are being forced to save more into a pot that has historically leaked billions. While NSSF Managing Director David Koross assures the public that the funds are safe and growing, the ghosts of past scandals—from Tassia to Hazina Trade Centre—loom large.

A Ticking Time Bomb

As the February payrolls are processed, the anger on the ground is palpable. The government argues that a savings culture is necessary for the nation’s future. But for the Kenyan worker, the future is a luxury they cannot afford. The immediate reality is a payslip that looks more like a receipt for government taxes than a reward for labor.