The National Social Security Fund (NSSF) will receive at least Sh2,000 from Kenyans’ salaries starting this month, up from the usual Sh200, according to the Court of Appeal.
According to a rule, members must now contribute 6% of an employee’s wages, and the employer must equal that amount.
Judges John Mativo, Mohamed Warsame, and Hannah Okwengu of the Appeal Court determined that the NSSF Act of 2013, which attempted to raise monthly contributions from Sh200 to Sh2,000, is lawful.
The NSSF Act, 2013, was deemed to be unconstitutional, null, and void by the Labour and Employment Relations Court in September 2022 because there was no public input prior to the act’s enactment.
President William Ruto publicly argued that the amount should be raised so that Kenyan workers may save up a respectable sum of money before the decision was made.
“The majority of those listed on the NSSF roster pay Sh200, which is absurd. It was only last week that the court informed us that raising it from Sh200 is improper. I honestly don’t know what we are doing at this point. Do we share a nation of residence?” Then, Ruto said.
Ruto said that he and the NSSF had decided to ask the court to reconsider its decision.
“We cannot keep taking out loans on other people’s savings. With our savings, we must develop our nation. Let’s take out a loan from our funds so we can pay our lenders interest,” Ruto remarked.
The Federation of Kenya Employers stated in November 2022 that the projected increase in NSSF contributions should be spread out over five years.
The new rates will be easier for companies and employees to adjust to, according to FKE, who also said that it should be implemented in accordance with “statutory minimums.”
The issue had been in court since 2014 as stakeholders in social security matters raised issues on how the NSSF Act 2013 will be implemented.
