2.2 Withholding of social security

Commentary

2.2.1 National Social Security Fund (NSSF)

Kenya
Kenya | Commentary

2.2.1 National Social Security Fund (NSSF)

Kenya | Commentary

2.2     Withholding of social security

Kenyan social security contributions are not affected by the EC regulations or by any reciprocal (bilateral) agreements between Kenya and other countries (see 6.1.2). Although EAC nationals (see 1.1) can work and access healthcare in Kenya, there is currently no cross-border social security contributions reciprocity between these countries.

Domestic rules for social security contributions require contributions to the:

  1.  

    •     National Social Security Fund (NSSF) for retirement benefits (2.2.1)

  2.  

    •     National Hospital Insurance Fund (NHIF) for health care (2.2.2)

2.2.1     National Social Security Fund (NSSF)

All employees working in Kenya and their employers (wherever located) must register with, and contribute to, the National Social Security Fund (NSSF). The NSSF contributions are tax-deductible and governed by the NSSF Act which can be accessed from a link here.

If an employee is a member of both the NSSF and a registered pension or provident fund, the combined value of their monthly NSSF contributions and pension or provident fund contributions cannot exceed KES 20,000. (PAYE guide, section 13)

The NSSF provides a range of retirement and death benefits, including emigration benefit for those permanently leaving Kenya. Link to NSSF website guidance here.

The key employer social security obligations under Kenyan law are to:

'1)     register with NSSF as a contributing employer within 30 days of first becoming an employer (5.1)

2)     register all employees

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial