Atwoli roots for new enhanced NSSF contributions amid resistance
Cotu supreme says ILO recommends that retirees should receive at least 40%-60% of their pre-retirement income, which underscores the importance of strengthening NSSF as a mandatory savings scheme
Central Organisation of Trade Unions (Cotu) Secretary General Francis Atwoli has thrown his weight behind the new National Social Security Fund (NSSF) rates, saying increased contributions will help eliminate old age poverty among workers.
In a statement, Atwoli accused those spreading misinformation and political narratives about implementation of the NSSF Act 2013 of seeking to mislead the public, hinder compliance and jeopardise workers’ long term financial security.
He noted that NSSF contributions are not a tax but a structured mandatory savings mechanism aimed at ensuring workers retire in dignity.
“Unfortunately, most of those politicising NSSF enjoy a superior pension or are assured of income streams through the numerous business ventures that they own,” he said.
At the same time, the Cotu boss noted that social security is a fundamental human right enshrined in both the International Labour Organisation (ILO) Convention and the 2010 Constitution, adding that it is the duty of the government, employers, and all players to uphold and enhance social security measures, including strengthening NSSF.
“As COTU-K, we hold the view that if anyone genuinely cares about workers, they should fully support NSSF in its mission to eradicate old-age poverty by ensuring that every Kenyans saves for retirement. A well-structured pension system provides both a lumpsum payout and a monthly pension, enabling retirees to maintain a decent standard of living,” said Atwoli.
He noted that the ILO recommends that retirees should receive at least 40%-60% of their pre-retirement income, which underscores the importance of strengthening NSSF as a mandatory savings scheme.
“Moreover, Kenya lags behind its East African Community (EAC) counterparts in social security contributions. While NSSF rates in Kenya are set at 12% (6% from the employer and 6% from the employee), Uganda mandates 15% ( 10% employer, 5% employee), and Tanzania has a much higher contribution rate of 20% (10% employer, 10% employee,” Atwoli added.
There has been criticism over the continued implementation of the NSSF Act, which saw contributions increase for the third year beginning on February 1.
It saw minimum contributions (Tier 1) increase from Ksh 420 to Ksh 480 while high-income earners’ contributions rose Ksh 4,320 from the current Ksh 2,160. The upper income limit (Tier 2) is set to go up from Ksh 36,000 to Ksh 72,000 while the lower limit was adjusted from Ksh 7,000 to Ksh 8,000.
Among those opposed to the new rates is the Council of Governors, which is seeking the exemption of county governments to allow them to contribute what was applicable under the NSSF Act 1965.
However, the bid has been rejected by NSSF sparking a row with the counties, which want to opt out of Tier 2 contributions.
“The refusal by NSSF to grant County Governments exemption from making the NSSF deductions is, in our view, baseless in law and therefore unlawful,” said CEO Mary Mwiti in a letter to the devolved units.
In the last three years, the government has come under fire for raiding the pay slips of Kenyans employed in the formal sector through various taxes and levies, a development that has provided fodder for President William Ruto’s critics, including his former deputy Rigathi Gachagua.
“We want to rescue the payslip because the payslip iliguzwa na iko shida mingi sana. (We want) to restore the dignity of the payslip so that the people are able to do their things,” Gachagua said after attending a church service in Murang’a on Sunday.
National Treasury Cabinet Secretary John Mbadi has, however, defended the government, saying it offered salaried Kenyans various reliefs in the Tax Procedures (Amendment) Act, which came into force in December last year.
Mbadi told a forum organised by Bunge la Wananchi in Nairobi’s Jevanjee Gardens that he will not seek to raise more taxes to fund the 2025/26 budget.
“The 2025/26 Finance Bill will not have any addition of rates. The government cannot tax Kenyans anymore. If you look at taxes on employment income, we have reached the maximum limit. Under my watch, you’ll not see any more taxes on employment income,” he stated.
