Court Petition Targets NSSF Contribution Hike

By Robai Ludenyi

The Consumers Federation of Kenya (COFEK) has moved to the High Court seeking urgent orders to stop the enforcement of enhanced National Social Security Fund (NSSF) contributions, arguing that a recent notice issued by the Fund is unconstitutional and goes against a decision made by the Court of Appeal.

In an application filed by COFEK Secretary General Stephen Mutoro, the consumer rights lobby wants the court to stop the NSSF from imposing penalties, surcharges, sanctions or any other enforcement measures against employers and contributors over alleged noncompliance with contribution requirements.

The application arises from what COFEK describes as conflicting directives issued following a Court of Appeal ruling delivered on May 29, 2026, which has created uncertainty among employers, employees and contributors across the country.

According to court documents, COFEK argues that unless the High Court intervenes immediately, millions of Kenyan workers and employers will continue to rely on the disputed notice, exposing them to financial risks and uncertainty while undermining public confidence in the management of social security laws and respect for court decisions.

The federation maintains that urgent conservatory orders are necessary to prevent further confusion and possible financial liability as the legal dispute continues.

COFEK is also seeking orders compelling the NSSF and relevant government agencies to issue a public advisory informing employer, employees and contributors that the dispute over the administration and enforcement of NSSF contribution obligations is currently before the court.

The proposed advisory would further clarify that no adverse compliance action should be taken against individuals or organizations acting in accordance with the contested directives until the matter is determined by the court.

According to the petition, the disputed notice continues to influence payroll processing and statutory remittances throughout the country. COFEK argues that if the notice remains in force, it will continue affecting salary deductions and employer remittances during every payroll cycle pending the hearing and determination of the case.

Mutoro argues that the notice is illegal, unconstitutional, null and void. He claims it has already influenced payroll administration and statutory deductions affecting millions of Kenyan workers nationwide.

COFEK further contends that the notice violates several constitutional provisions, including those relating to national values and governance, access to information, consumer rights, fair administrative action and principles of public service. The federation also argues that the directive amounts to an attempt to sidestep the Court of Appeal’s ruling.

The petition is currently pending before the High Court, which is expected to determine whether the enhanced NSSF contribution framework can continue being enforced while the legal challenge is being heard.

Read Also: NSSF to Cut Exposure to Government Securities And Boost Other Investments