NSSF TIER II
Overview
The NSSF Act 2013 restructured retirement savings in Kenya into two contribution tiers. Tier II is the portion of your NSSF contribution that goes beyond the Lower Earnings Limit — and unlike Tier I, it doesn’t have to stay with NSSF.
Employers and employees now each contribute 6% of pensionable salary up to defined salary caps, split across both tiers. Tier II contributions can be redirected to an RBA-approved private pension scheme like those offered by Kenyan Alliance.
Tier I
6% of salary up to the Lower Earnings Limit (LEL). Paid directly to NSSF — not transferable.
Tier II
6% of salary between the LEL and Upper Earnings Limit (UEL). Can be remitted to a private RBA-approved scheme.
Features & Benefits
Competitive returns
Your savings earn a guaranteed 5% return plus additional competitive interest, ensuring your retirement pot grows steadily over time.
Diversified risk management
Funds are invested across both public and private sector assets, balancing growth potential with stability.
Prompt benefit settlement
When the time comes, pension benefits are processed quickly and transferred seamlessly to your post-retirement plan — no lengthy delays.
Dedicated member support
Access regular workshops, webinars, and one-on-one consultations, plus a self-service portal and a dedicated relationship manager.
End-to-end retirement planning
From building your savings to drawing them down, Kenyan Alliance supports both your pre-retirement growth and post-retirement income needs.
Fully regulated & compliant
The scheme operates under the Retirement Benefits Authority (RBA), ensuring transparent investment practices and full regulatory compliance.
Requirements
Documents needed to enrol
The following documents are required to get started with the Kenyan Alliance NSSF Tier II Plan.
- Employer Registration Certificate
- KRA PIN Certificate — for both employer and employee (a list is sufficient for companies)
- Employee identification documents — national ID or passport
- Completed Pension Scheme Application Forms (for individual clients)
- Payroll records for verification — applies to companies
- Contracting-out certificate — if already approved by RBA
How to get started 4 steps
- Align your payroll-Update your payroll system to reflect the NSSF Act 2013 structure and salary caps.
- Review contribution rates- Confirm that both employer and employee contributions meet the 6% minimum threshold.
- Apply to contract out-Submit an application for approval to redirect Tier II contributions to Kenyan Alliance Insurance.
- Transfer existing funds (if applicable)-If you’ve already remitted Tier II contributions to NSSF, you can apply to transfer those funds to the Kenyan Alliance Scheme.
Eligibility
For employers
Any registered Kenyan employer currently making NSSF contributions
Employers seeking to contract out of NSSF Tier II into an RBA-approved private scheme
Companies that have already remitted Tier II to NSSF and wish to transfer to a private scheme
For employees
Formal sector employees whose employer is enrolled or enrolling in the Kenyan Alliance Tier II scheme
Individuals interested in the Kenyan Alliance New Life Individual Pension Scheme
Members who want to consolidate existing NSSF Tier II funds under a managed private scheme
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