The National Social Security Fund (NSSF) has unveiled plans to raise mandatory retirement deductions to Sh1,080 per month, according to developments in 2019. The proposal, tied to the unimplemented NSSF Act of 2013, would require workers to contribute 12% of pensionable earnings, with employers matching payments.
NSSF Board Chairman Julius Karangi confirmed ongoing discussions with the Central Organisation of Trade Unions (Cotu) and the Federation of Kenya Employers (FKE) aimed at resolving a five-year stalemate. He emphasized the need to operationalize the 2013 legislation within two months, warning of financial risks if delays persist.
The 2013 Act originally set a maximum pensionable earnings threshold of Sh18,000, with workers contributing Sh720 monthly for tier I and up to Sh1,440 for tier II earnings above the limit. Employers were required to match employee deductions, though the law remains unimplemented. The fund, established in 1965, has faced leadership challenges, including a vacant CEO position since 2016.
Retirement Benefits Authority official Charles Macharia called for alternative dispute resolution, noting the impasse has lasted five years. The stalemate coincides with ongoing governance issues at the agency, which has experienced board conflicts and mismanagement allegations since its founding.
