The High Court has quashed the bid to increase monthly contributions to the National Social Security Fund (NSFF) ten-fold up to KES 2,068 after it ruled that the law supporting the increments was unconstitutional.
The NSSF Act 2013 sought to raise monthly contributions by employees from the current KES 200 monthly and demanded employers match the payout.
The higher pension contributions were aimed at helping the NSSF build a bigger retirement pot and offer workers monthly stipends after their retirement as opposed to the current one-off payment.
However, Justices Mathews Nduma, Hellen Wasilwa and Monica Mbaru quashed the NSSF Act of 2013, saying it was not subjected to public participation in breach of the Constitution— which demands community input before major decisions are taken.
The contributions were last reviewed in 2001 when the rate was increased to KES 200 from KES 160.
Nevertheless, NSSF maintains that the country’s dependency ratio is too high and that higher savings will help people retire in dignity.
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