The National Social Security Fund (NSSF) has directed employers to continue deducting and remitting pension contributions at the current rates, saying the recent Court of Appeal ruling has not changed how much workers and employers are required to contribute.
In a statement issued on Friday, NSSF sought to clear confusion that emerged after a court decision last week, which some Kenyans interpreted to mean contributions should revert to the old rates of KSh200 from employees and KSh200 from employers.
The Fund maintained that the enhanced contribution rates introduced under the NSSF Act, 2013, remain in force and should continue to be implemented by all employers.
“This is to clarify to our members and stakeholders that the NSSF Act is still in force on account of the judgment of the Court of Appeal rendered on February 3, 2023,” NSSF said.
The Fund stated that the current court cases won’t change the contribution rates that employers and employees pay right now. “These pending court issues don’t impact the contribution rates for employers and employees, which stick to what’s listed in the Third Schedule of the NSSF Act for the Year Four Cycle,” the statement said.
This clarification follows the Court of Appeal’s recent decision to turn down NSSF’s request to pause a previous judgment. On May 29, the appellate court ruled that NSSF hadn’t shown how failing to grant a stay order would seriously hurt the pension sector. So, everything continues as it is until further notice.
The judges noted that while the Fund had raised legal questions worth consideration, it had not provided enough evidence to show that pension operations would be disrupted if the stay was not granted.
NSSF had argued that invalidating the 2013 law could affect pension collections, disrupt the Haba na Haba savings programme and create uncertainty for millions of members.
However, the court observed that the Fund had not presented audited financial statements or actuarial reports to support claims of possible financial losses or operational challenges.
The judges further noted that pension contributions had been collected under the previous legal framework for many years without evidence of major governance or management problems.
Even so, NSSF insists the law remains operational and says the enhanced deductions are important in helping workers build stronger retirement savings.
The Fund also defended the higher contribution rates as part of efforts to reduce old-age poverty and improve social security for Kenyan workers.
According to NSSF, its asset base had grown to about KSh715 billion by the end of March 2026.
The Fund said it remains committed to protecting members’ savings as it awaits further directions from the courts on the ongoing legal dispute.