The Supreme Court of Kenya has given the National Social Security Fund (NSSF) a clean bill in effecting the new enhanced rates. An application had been filed seeking the highest court in the land to stop the government from going ahead with the new contributions.
The petition had been filed by County Pensioners Association seeking an order restraining the NSSF Board of Trustees, the Attorney General, and the Federation of Kenya Employers and their respective agents from implementing some sections of the NSSF Act.
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The County Pensioners Association represents about 6,000 retirees who were contributors to the local authorities pensions trust. The retirees argued that the implementation of the Act poses a threat of monopoly and will impoverish the entire pensions industry.
“None of the applicants demonstrates that in the event the appeal succeeds that the contributions made to NSSF would be lost or inaccessible to the contributors or their beneficiaries,” the Supreme Court judges said while delivering the ruling.
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In February, NSSF released new directives for employers as it commences the implementation of the 2013 Act.
The new directives required all employers to register with the Fund as contributory employer failure to which they were to be liable to a fine not exceeding 50,000 shillings. Further, they were required to provide proof of registration with NSSF for them to enjoy public services.
All employers were also required to confirm that all employees are registered with NSSF before providing a proper and up-to-date register and record of the employee’s earnings and particulars for such period as may be prescribed by the NSSF Board which shall not exceed 10 years.
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