Central Organization of Trade Unions Organization (COTU) secretary general, Francis Atwoli, on Tuesday, November 1, supported President William Ruto's decision to increase the contributions towards the National Social Security Fund (NSSF).
Atwoli stated that the increment was long overdue, arguing that Kenya’s rate of contribution towards the social security fund is the lowest in East Africa.
The increment, he added, would enhance the retirement benefits scheme's adequacy and align with COTU's vision of improving the welfare of workers.
In addition, Wetangula noted that the proposed horizontal expansion of NSSF coverage would, in the long run, help to accommodate people in the informal sector.
"COTU (K) advocates for the expansion of social protection and or retirement benefits, first, horizontally to increase the coverage to include the Jua kali sector (informal sector) and, second, vertically to increase the rate to realize adequacy for retirement benefits," Atwoli stated.
“We would like to make it clear to all Kenyan workers and Kenyans, in general, that we fully support the increment in NSSF deductions from the current Ksh200 to the 6 per cent rate as captured in the NSSF Act."
The COTU boss also dispelled allegations that the Trade Unions' umbrella had an active case opposing the implementation of the NSSF fund.
Whilst admitting that COTU had filed a case in 2014 seeking to suspend the fund, Atwoli noted that the union withdrew the case after the government agreed to resolve the reservations raised against it.
"COTU (K) withdrew the case against NSSF in October 2020 after the two issues were resolved," read the statement in part.
Atwoli urged all workers to embrace the new proposal asserting that they were within the law and were meant to benefit the working class.
Since his ascension to office, President William Ruto has insisted on the need to review the current contribution rates by workers upwards.
However, the proposition was greeted by contestation from different quarters. Notably, an increase in the rate of contribution by workers would necessitate a revision of the legislation to allow the adjustments.
