Ruto’s Retirement Ruckus: Court Approves NSSF Increase


It seems like Kenyans will have to dig deeper into their pockets to secure their golden years. The Court of Appeal has issued a ruling setting aside a previous judgment by the Environmental and Labour Court that declared the National Social Security Funds (NSSF) Act 2013 unconstitutional.

“Ruto Ramps Up Retirement Robbery: NSSF Deductions to Increase”

President William Ruto, who has been vocal about his intentions to increase workers’ monthly deductions, now has the support he needs to implement his plan. The labor court had denied NSSF’s push to increase the standard fee for contributions from Kenyans to a total of 12 percent of what they earn.

“The Nitty-Gritty of NSSF: What Kenyans Need to Know”

Section 20 of the NSSF Act calls for mandatory contributions by employed Kenyans, with the employee contributing six percent of their earnings and the employer matching the same amount. For example, an employee with a pensionable income of Ksh20,000 would contribute Ksh1,200 and the employer would match the same amount.

However, the Kenya Tea Growers Association, Agricultural Employers Association, Kenya County Government Workers Association, and six others, moved to court to challenge the implementation of the act, claiming it granted NSSF a monopoly in the pension industry, against fair competition laws.

In September 2022, President Ruto called for a revision of the country’s pension contribution rates, terming the Ksh200 monthly remittances as inconsequential. But now, with the court’s ruling, it seems like Kenyans will have to brace themselves for an increase in their monthly deductions.

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