Anthony Ramage
The National Social Security Fund (NSSF) issued a new directive to employers after the Court of Appeal’s judgment on contributions NSSF managing trustee David Koross said ongoing legal proceedings do not affect the contribution rates Koross argued that the progressive NSSF Act, 2013, has enabled higher savings and improved member benefits TUKO.co.ke journalist Japhet Ruto has over eight years of experience in financial, business, and technology reporting, offering insights into Kenyan and global economic trends.
Despite a recent Court of Appeal decision declining to suspend a judgment that declared the NSSF Act, 2013, unlawful, the National Social Security Fund (NSSF) has directed employers to continue deducting and remitting contributions at the current higher rates.
NSSF directed employers to continue with higher dedctions. Photo: NSSF.
Source: Facebook NSSF urged the public to disregard claims that deductions should revert to the previous KSh 200 employer and KSh 200 employee contributions.
What did NSSF clarify? In a statement issued on Friday, June 5, NSSF managing trustee David Koross said ongoing legal proceedings do not affect the contribution rates currently being applied by employers and employees.
“We advise all employers, employees, and stakeholders to disregard claims that contributions should revert to KSh 200, and to await guidance from the Court of Appeal on matters still under consideration, which do not affect the current higher contribution rates,” Koross stated in a notice in the Daily Nation. The NSSF chief executive officer reaffirmed that all employers and employees must comply to avoid unjustified penalties and the loss of benefits that have already accrued.
“This is to clarify to our members and stakeholders that the NSSF Act is still in force on account of the judgment of the Court of Appeal rendered on February 3, 2023,” Koross reiterated. Why did NSSF insist on higher contributions? Only 20% of Kenyan workers now have a retirement savings plan, according to the NSSF.
Due to inadequate savings in previous years, only 6% of Kenyans rely on pensions, with over 1.2 million older people going hungry at night and more than 0.8 million living alone in extreme poverty.
Low savings among workers, previously as little as KSh 200, matched by employers at KSh 200, have worsened old-age poverty.
NSSF argued that legal proceedings do not affect contributions. Photo: NSSF.
Source: Facebook It argued that the progressive NSSF Act, 2013 has enabled higher savings and improved member benefits, an important step toward supporting dignified retirement livelihoods.
What was the Court of Appeal’s ruling? The NSSF directive was issued a week after the Court of Appeal rejected the fund’s request to suspend a ruling that declared the NSSF Act, 2013 illegal, offering temporary relief to salaried Kenyans.
In its decision on May 29, 2026, the appellate court found that NSSF had not demonstrated that the pension sector would suffer irreversible harm if a stay order was denied.
While the fund raised arguable legal issues, the judges noted that this alone was not sufficient to justify delaying the lower court’s ruling.
NSSF said that invalidation of the 2013 law could disrupt the management of billions of shillings in pension funds, interfere with contribution flows, affect the Haba na Haba savings plan, and create uncertainty for members.
Source: TUKO.co.ke
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