In February 2023, the Kenyan government introduced revised mandatory National Social Security Fund (NSSF) contributions, shifting from a flat rate of Ksh200 to a graduated plan. The new deductions are based on the NSSF Act, 2013, which was finally implemented following years of legal challenges. The revised contributions, which are set to raise Ksh1 trillion in the next five years, affect both employees and employers.
As of February 2024, Kenyan employees earning between Ksh7,000 and Ksh29,000 now contribute between Ksh420 and Ksh1,740 to the NSSF, amounts that are matched by employers. The NSSF has also migrated its services to the eCitizen platform, simplifying the payment process for employers and individuals alike. This article provides a step-by-step guide on how Kenyans can make their NSSF contributions via USSD and the eCitizen platform.
Understanding the New NSSF Contributions Structure
The new NSSF contribution rates are categorized into two main tiers:
- Lower Earnings Limit (LEL): The lowest pensionable salary, raised from Ksh6,000 to Ksh7,000. Employees in this category contribute Ksh420, up from Ksh360.
- Upper Earnings Limit (UEL): Raised from Ksh18,000 to Ksh29,000. Employees in this bracket contribute Ksh1,740, up from Ksh1,080.
In both categories, employers are required to match the contributions made by employees. The NSSF aims to bolster the national pension system, targeting to collect Ksh1 trillion within five years through the updated scheme.
Making NSSF Payments via eCitizen
The eCitizen platform offers a seamless way for Kenyans to manage their NSSF contributions, whether they are employers making mandatory payments or individuals making voluntary contributions.
Step-by-Step Guide for Voluntary Contributions:
- Sign in to eCitizen:
- Visit the eCitizen portal.
- Log in using your credentials or create an account if you don’t have one.
- Locate NSSF in the Agencies Section:
- Navigate to the “Agencies” section and select NSSF services.
- Select the Service:
- Choose either “Voluntary Contribution” for self-employed individuals or “Employer Payment” for employers.
- Enter NSSF Member Number:
- For voluntary contributors, select “Voluntary Contribution” and enter your NSSF member number, then click “Validate.”
- Key in Payment Amount:
- Enter the amount you wish to contribute and click “Make Payment.”
- Select Payment Mode:
- Choose your preferred payment method (e.g., mobile money, bank transfer) and follow the instructions to complete the transaction.
Step-by-Step Guide for Employer Payments:
- Generate Unique Payment Number (UPN):
- Go to the NSSF E-Service portal and generate a Unique Payment Number (UPN).
- Sign in to eCitizen:
- Log in to your eCitizen account and select “NSSF” in the Agencies section.
- Select Employer Payment:
- Enter your UPN and the amount you are paying for your employees.
- Make Payment:
- Choose the preferred payment method and follow the instructions.
Making NSSF Payments via USSD
For those who may not have access to the internet or prefer mobile-based transactions, the NSSF offers a USSD option for making contributions.
For Voluntary Contributions:
- *Dial 222#:
- On your mobile phone, dial *222# and select “Make Payment.”
- Select Option 2 (Enter Service Code):
- Choose Option 2 to enter the service code and input “NSSFV” (for self-employed workers).
- Enter Member Number:
- Input your NSSF member number, followed by the amount you wish to contribute.
- Confirm Payment:
- After confirming your payment details, enter your mobile money PIN and wait for a confirmation SMS from your service provider.
For Employer Payments:
- *Dial 222#:
- Dial *222# and select “Make Payment.”
- Enter Service Code (NSSFE):
- Choose Option 2 and enter the service code “NSSFE” (for employers).
- Enter Employer and Member Number:
- Enter your employer and member number, then input the payment amount.
- Confirm Payment:
- After reviewing the payment details, confirm by entering your mobile money PIN. A confirmation SMS will be sent to your phone.
With the transition to a new graduated NSSF contribution plan, it is crucial for employers and employees alike to stay updated with the latest requirements. By using the eCitizen platform and the USSD service, Kenyans can easily manage their NSSF contributions, ensuring compliance with the law while planning for retirement.
The convenience of these online and mobile platforms reduces the need for physical visits to NSSF offices, making it simpler to make timely payments. Whether you’re an employer managing contributions on behalf of your employees or a self-employed individual looking to voluntarily contribute to your retirement fund, the eCitizen and USSD services offer efficient solutions.
By staying proactive with NSSF contributions, Kenyans can secure a more stable financial future while benefiting from the government’s efforts to improve social security in the country.
