Kenyans to Pay Higher NSSF Rates, China Extends SGR Loan Repayment

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Hello and welcome to the Money Weekly Newsletter, where we cover the new NSSF rates set to take effect in February 2026.

We also want to take this moment to wish you a Merry Christmas and a Happy New Year 2026.

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Kenyans to Pay Higher NSSF Rates 

Starting February 2026, employees will pay up to Ksh2,160 more to the National Social Security Fund (NSSF) as the government implements the enhanced rates.

For Kenyan employees earning below Ksh50,000, their net pay is expected to remain the same. 

However, for those earning above Ksh50,000, the actual reduction on payslips will be about Ksh1,512, not the full Ksh2,160, given that NSSF contributions are tax-deductible.

Kenyans earning Ksh75,000 will see their net pay reduce to Ksh54,735 from Ksh54,861 as their new NSSF rate will be Ksh4,500.

Those earning a gross pay of Ksh100,000 will be taking home Ksh70,442, a reduction from the current Ksh71,618. The new NSSF rates for these employees will be Ksh6,000.

The new NSSF rates for Kenyans earning between Ksh200,000 to Ksh1 million will be Ksh6,480.

As a result, Ksh200,000 gross earners will have their take-home pay reduced from Ksh138,643 to Ksh137,131, while those earning Ksh300,000 will have their pay reduced from Ksh205,668 to Ksh204,256.

Individuals earning Ksh500,000 gross pay will have their net pay at Ksh338,206, down from Ksh339,718. Those earning Ksh1 million will have their take-home pay reduced from Ksh659,684 to Ksh658,280.

Equally, as required by law, employers are required to match employee contributions. Therefore, Employers will also incur higher payroll costs to accommodate the revised contributions.

These changes stem from the NSSF Act of 2013, which took effect in 2023.

In 2023, the maximum NSSF deduction was Ksh200. From February 2023, this rose sharply to Ksh2,160, before increasing further to Ksh2,580 in February 2024. This year, the maximum monthly NSSF contribution has risen again to Ksh4,320.

With these increases, NSSF has become Kenya’s largest pension fund, currently holding assets worth Ksh558 billion. The pension fund has also been using the pension funds to fund government projects such as the Nairobi–Rironi–Mau Summit Road, where the investment will be recouped through toll fees.

Here is a quick recap of the top money news for the week:

China Extends SGR Loan Repayment

China has agreed to extend the repayment period for three loans used to finance the Standard Gauge Railway (SGR) to 2040, easing Kenya’s short-term debt burden. The National Treasury said the facilities have been renegotiated into a new 15-year arrangement starting this year, with a five-year grace period during which no principal repayments will be made.

The loans, originally set to mature in 2035, were also restructured from US dollars to the Chinese yuan, a shift expected to save Kenya about Ksh27.7 billion annually. Previously, Kenya had been paying both interest and principal to China Exim Bank under the earlier terms.

Catch Up on More News

WEEKLY MONEY TIPS

MONEY254 #MONEYTOK

Why Kenyans Buy Expensive Items for Christmas (The Psychology Behind It)

Have you ever noticed how December seems to flip a switch in people? All year, budgets matter, and then when the festive season arrives, shopping malls are packed, people are making big purchases, and social media fills up with road trips, new outfits, and going home in style moments, what often looks like generosity and celebration is often something deeper.

This video breaks down the psychology behind it, watch to learn more.

@money254hq

𝐖𝐡𝐲 𝐊𝐞𝐧𝐲𝐚𝐧𝐬 𝐁𝐮𝐲 𝐄𝐱𝐩𝐞𝐧𝐬𝐢𝐯𝐞 𝐈𝐭𝐞𝐦𝐬 𝐟𝐨𝐫 𝐂𝐡𝐫𝐢𝐬𝐭𝐦𝐚𝐬 [𝐓𝐡𝐞 𝐏𝐬𝐲𝐜𝐡𝐨𝐥𝐨𝐠𝐲 𝐁𝐞𝐡𝐢𝐧𝐝 𝐈𝐭] Have you ever noticed how December seems to flip a switch in peop... See more

That’s a wrap for this week’s Money Weekly!

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