NSSF to Collect Ksh 7 Billion More in the New Directive

The National Social Security Fund (NSSF) is projecting an additional 7 billion shillings in remittances in the current financial year following an increase in the members’ monthly contributions that were effected last month.

Speaking in an interview with NTV, NSSF chairman Anthony Munyiri said the Fund rakes in 16 billion shillings from workers annually which translates to 1.33 billion shillings per month.  The government-backed pension scheme is expecting this figure to shoot to 27 billion shillings in the 2023/24 financial year.

“It’s a good opportunity for the Fund to grow. It gives us a challenge as the board as well as the management to ensure we are growing this Fund for the sake of Kenyans… The more you contribute the more the Fund grows’’ said Munyiri.

The new rates follow a February 3,2023 Court of Appeal ruling which reinstated the NSSF Act 2013, after years of clashes that delayed the implementation of the Act. The Act requires that all employers remit a total of  2,160 shillings as Tier I and II for their employees to NSSF.

Tier I contributions mean contributions in respect of pensionable earnings up to the lower earnings limit of 6,000 shillings while Tier II contributions mean contributions in respect of pensionable earnings above the lower earnings limit. Tier members will pay 360 shillings while those in Tier II –those earning above 18,000 shillings – will contribute 720 shillings.

Munyiri termed the current move as an opportunity for the Fund to diversify its asset classes for higher returns while ensuring members’ savings are secure.

NSSF invests most of its members’ contributions in government securities which account for about 60 percent of the Fund’s total Assets Under Management (AUM), while properties account for about 18 percent of its total AUM.  Munyiri further clarified that the enhanced contribution will help the Fund invest in minimal-risk-free investments and asset classes that guarantee returns.