The National Social Security Fund (NSSF) Act, 2013 (the Act) has undergone several amendments in recent years. Some of the key changes included the introduction of increased contribution rates and the expansion of the contribution base to include workers in the informal sector, as well as the creation of the two-tier system for contributions.
Starting February 2025, Kenyan employees and employers will see changes in NSSF contribution. This adjustment marks the third phase of the phased implementation of the NSSF Act of 2013, which aims to enhance retirement benefits for workers by gradually increasing contribution rates over a five-year period.
We have analysed the implementation of the Act and the new rates to provide insights of their impact to Kenyan employers and employees here.
KPMG is happy to assist on any issues arising from this alert. If you have any questions, please do not hesitate to reach out to our tax team on taxandregulatory@kpmg.co.ke.
