Kenyans will take home less pay as the government plans to hike the National Social Security Fund (NSSF) deductions from next year.
Beginning February next year, Kenyans will pay up to Ksh4320 monthly from Ksh2160 currently contributed by both employees and employers.
Employed Kenyans would be deducted 6 per cent of their salaries.
The deduction will be implemented beginning February 1, 2025, as part of the government’s move to enhance remittance to the security fund.
The lower earnings limit or the amount that is considered the lowest pensionable salary has been raised to Sh9,000 up from the current Sh7,000.
The upper earnings limit has been raised to Ksh 29,000 with this category of employee set to contribute more money.
Moreover the deductions would be based on the amount an individual earns.
This comes after the National Assembly Committee on Finance and National Planning, led by Molo MP Kuria Kimani, on Thursday, concluded public hearings of the bills, paving the way for further approval by parliament.
