NSSF has warned employers against delaying monthly pension contributions.
NSSF urges employers to remit October 2026 pension contributions, warning that overdue payments attract a 5 per cent monthly penalty.
Employers who delay remitting monthly pension contributions face an NSSF penalty of 5 per cent on the outstanding amount. The charge applies for every month, or part of a month, that payments remain overdue.
The National Social Security Fund issued the warning on Monday, November 9, over contributions from October 2026 salaries. It urged employers to submit workers’ deductions alongside their own matching contributions.
The Fund also cautioned employers against withholding deductions, saying timely payments help it record employees’ contributions correctly.
How the NSSF penalty applies
Employers must remit contributions by the ninth day of the month following the salary deduction. October contributions therefore fall due on November 9, with late payments attracting the monthly charge.
The penalty also covers part of a month, rather than only complete months of non-payment. NSSF calculates the charge at 5 per cent of the amount that remains unpaid.
To complete the process, employers must file monthly returns through the Fund’s self-service portal. They must then remit the combined employee and employer contributions through the available payment channels.
The obligation covers both portions of the pension payment, not just deductions from workers’ salaries. Employers must therefore add their matching share before submitting the total amount to NSSF.
Contribution rates remain in force
Under the 2026 structure, employees contribute 6 per cent of pensionable earnings, while employers match that amount. The system divides payments into Tier I and Tier II, depending on monthly earnings.
Tier I covers earnings up to Ksh9,000, with each party contributing a maximum of Ksh540. Meanwhile, Tier II covers earnings between Ksh9,001 and Ksh108,000, with a maximum contribution of Ksh5,940 from each party.
The rates remain in place despite legal challenges involving provisions of the NSSF Act. The Court of Appeal declined to suspend an Employment and Labour Relations Court judgment declaring key provisions unconstitutional.
Following that decision, NSSF clarified on June 5, 2026, that employers should continue using the existing rates. It directed them not to revert to the previous Ksh200 monthly contribution from each party.
The Fund maintained that pending proceedings did not change the applicable rates. These remain under the fourth implementation year set out in the Act’s Third Schedule.
