Payslips shrink as new NSSF rates take effect

FKE Executive Director Jacqueline Mugo says the mandatory NSSF rate hike, while supporting long-term savings, presents a “significant issue” for disposable income. [File, Standard]

Millions of Kenyan employees will see their take-home pay shrink end of February when the fourth and final phase of higher National Social Security Fund (NSSF) pension contribution takes effect, a move employers warn will squeeze workers who are already grappling with a high cost of living.

The Federation of Kenya Employers (FKE) said the mandatory hike, while supporting long-term savings, presents a “significant issue” for disposable income, amid concerns of a mounting burden from multiple statutory deductions.