The National Social Security Fund (NSSF) will challenge the High Court ruling that stopped its bid to increase monthly contributions from the current KES 200 to up to KES 2,068.
During a meeting with investors at the NSE on Tuesday, President William Ruto said he has agreed with the NSSF management and board to go back to the courts and push for increased compulsory monthly contributions towards retirement.
“I have had a conversation with the management and board of NSSF, and we have agreed that we need to go and talk to the court again and ask them do we live in the same country?…I am hoping, working with Parliament and Judiciary, we can arrive at a compromise where we can increase our savings. We will be persuading Parliament and hopefully the court so that we do the right thing.” Dr Ruto in a forum at Nairobi Securities Exchange (NSE).
The High Court, in quashing the NSSF Act of 2013, which was to allow for up to KES 2,068 monthly contributions to the Fund, said the Act was not subjected to public participation in breach of the Constitution.
The NSSF Act 2013 sought to raise monthly contributions by employees from the current KES 200 monthly and demanded employers match the payout, which was aimed at helping the NSSF build a bigger retirement pot and help workers have more money at retirement.
The fund further explained that the costs involved in collecting KES 200 are rising and almost not sensible given the amount being collected has remained the same for over two decades.
As of June 2021, the fund asset base stood at KES 284.49 billion, with the Fund having paid out KE S5.8 billion within this period.
Read also; High Court Quashes NSSF’s Bid to Increase Monthly Contributions from KES 200 to KES 2,068
