The Central Organisation of Trade Unions (COTU) has urged workers and employers to continue remitting National Social Security Fund (NSSF) contributions under the current enhanced rates, saying the existing framework remains in force despite ongoing court battles over the law.
In a statement issued on Saturday, COTU Secretary General Francis Atwoli said the workers’ body believes the contribution structure provided for under the NSSF Act, 2013, is still valid and enforceable.
According to COTU, its position is based on a Court of Appeal judgment delivered on February 3, 2023, which paved the way for the implementation of the enhanced contribution rates.
“As the umbrella body charged with representing workers of Kenya, we would like to inform the general public that, as workers of Kenya, we will continue to make contributions through the improved contribution structure as stipulated in the NSSF Act, 2013, which, in our opinion, still stands and is enforceable owing to the decision by the Court of Appeal on 3rd February, 2023,” Mr. Atwoli stated.
This follows in the wake of several appeals from employers and employees alike amid a recent ruling by the Court of Appeal concerning the validity of the law.
The court ruled on May 29 to dismiss an application seeking for a stay of execution of the previous ruling declaring some provisions of the NSSF Act, 2013, as unconstitutional, since NSSF failed to offer any substantive reasons justifying the stay.
This verdict brought uncertainty to both employees and employers regarding whether contribution rates were to be reverted back to their former level.
Nevertheless, NSSF came out later and clarified to all employers to continue to deduct and pay contributions at the enhanced rate despite the court process still underway.
COTU has now backed that position, warning that any interruption in remittances could affect workers’ retirement savings.
The trade union federation said employers should continue complying with the current arrangement as the legal process continues.
At the same time, COTU called for clearer communication from institutions involved in the case, saying conflicting interpretations of court decisions were creating uncertainty among workers, employers and pension stakeholders.
The dispute over the NSSF Act continues to draw mixed reactions from legal and labour circles.
Some lawyers have argued that the recent court decisions mean contributions should be based on the previous law rather than the NSSF Act, 2013.
Among them is advocate Ndong Evance, who faulted NSSF and the Attorney General for what he described as a failure to properly interpret the court’s position.
He argued that the Supreme Court had previously found that the Court of Appeal lacked jurisdiction when it handled the matter and referred the case back for determination on its merits.
Even as the legal arguments continue, workers and employers remain caught between competing interpretations, with many now awaiting further direction from the courts on the future of the NSSF contribution framework.
