A client with non-resident employees working in Kenya raised a question regarding social security and housing levy obligations. Should non-residents contribute to the NSSF, NHIF, and Affordable Housing Levy? This is an important question, especially with ongoing legislative updates.
Our legal team reviewed the current Acts and available draft regulations to provide a clear, compliant answer.
Under Section 29 of the NSSF Act, non-residents employed in Kenya for fewer than three years may be exempt from NSSF contributions if they:
If approved:
This exemption is clearly defined in law and can be applied immediately once documentation is confirmed.
Unlike the NSSF, there is currently no legal exemption for non-residents from:
While Section 6 of the Affordable Housing Levy Act authorises the Cabinet Secretary to issue exemptions via Gazette notice, no such notice has been published yet.
Draft regulations outline how exemptions might work in the future, but they are not legally in force.
Key Takeaway: Non-residents may qualify for NSSF relief, but NHIF and housing levy contributions remain mandatory under current Kenyan law.
Until the new regulations become official:
This ensures employers remain fully compliant during a fluid regulatory period
