The National Social Security Fund (NSSF) in a statement released on Tuesday, February 7, explained to Kenyans why they should be happy with increased monthly deductions.
The statement was made moments after The Court of Appeal okayed the agency’s move to increase monthly deductions from Ksh200 to Ksh2000.
While Kenyans will now have to dig deeper into their pockets, NSSF told Kenyans that they should do that with a smile on their faces.
“The decision by the Court of Appeal okaying the full implementation of the NSSF Act No. 45 of 2013 is a significant milestone and a big win for all Kenyan workers,” the statement read in part.
While Kenyan workers will now be receiving lesser salaries following the 10-fold deduction increase, NSSF assured them it is for their long-term good.
“The increased deductions will allow members to enhance their savings, and secure their financial future,” NSSF explained.
When a member attains the retirement age, NSSF upon receiving an application pays the individual the total sum amount of what they had contributed.
NSSF argues that with the Ksh2000 monthly deductions, the agency will be paying out more money to its members at retirement which, according to them, amounts to letting its members retire with dignity.
The NSSF Act No. 45 of 2013 which proposed the increment was first declared unconstitutional by the Labour and Employment Relations Court on September 2022.
While delivering its ruling, the Court explained that the Act was in breach of the Constitution as there was no public participation ahead of its enactment.
NSSF subsequently appealed the ruling at the Court of Appeal where the legality of the Act was okayed by Judges Hannah Okwengu, Mohamed Warsame, and John Mativo.
With the Act now set for implementation, members will now increase their contribution to six per cent of an employee’s earnings, with the employer matching the same.
Source: kENYANS.CO.KE