The Central Organization of Trade Unions (COTU-K) has defended the full implementation of the National Social Security Fund (NSSF) Act of 2013, dismissing claims that it imposes an unnecessary financial burden on workers.
In a statement on Tuesday, February 4, COTU emphasized that the Act is essential in ensuring Kenyan workers retire with dignity and financial security.
“COTU has noted with concern the misinformation and political narratives surrounding the implementation of the NSSF Act of 2013. As the voice of Kenyan workers, we affirm that its full implementation is not only beneficial but necessary for securing workers’ financial futures,” the statement read.
The union warned against politicizing or misrepresenting the revised contribution rates, stating that such narratives mislead workers and jeopardize their long-term stability.
“First and foremost, NSSF is not a tax. It is a structured mandatory savings mechanism aimed at ensuring workers retire with dignity. Unfortunately, most of those opposing NSSF enjoy superior pensions or have assured income streams through business ventures.
“Attempts to misrepresent the revised contribution rates, legally enacted in 2013, only serve to mislead the public, hinder compliance, and jeopardize workers’ financial security,” COTU added.
COTU underscored that social security is a fundamental human right protected by both international labor standards and Kenya’s Constitution.
“The International Labour Organization (ILO) Convention No. 102 (1952) sets minimum global standards for social security. Additionally, Article 43 of the Constitution guarantees every citizen the right to pension and social security. It is the duty of the government, employers, and all stakeholders to uphold and enhance social security measures, including strengthening NSSF,” the statement noted.
COTU urged workers to ignore those opposing the Act, arguing that such opposition benefits individuals who already have financial security rather than ordinary workers.
“If anyone genuinely cares about workers, they should support NSSF’s mission to eliminate old-age poverty by ensuring every Kenyan saves for retirement. A well-structured pension system provides both a lump sum payout and a monthly pension, allowing retirees to maintain a decent standard of living,” the statement added.
Starting February 2024, NSSF will implement revised contribution rates under the 2013 Act, affecting both employees and employers.
- Lower Earnings Limit (Tier I): Increased from Ksh 6,000 to Ksh 7,000. Employees will contribute 6% (Ksh 420), with employers matching the amount, bringing the total to Ksh 840 per month.
- Upper Earnings Limit (Tier II): Increased from Ksh 18,000 to Ksh 36,000. Employees earning above Ksh 7,000 will contribute 6% of the difference (Ksh 1,740), with employers matching, bringing the total to Ksh 3,480.
Employers are required to match each employee’s contribution, effectively doubling the total remitted to NSSF.
