The fate of Kenyan workers in relation to the National Social Security Fund (NSSF) deductions now lies in the hands of Chief Justice Martha Koome.
This was after a case opposing President William Ruto’s government from effecting the new changes was forwarded to the CJ to develop a panel to determine its outcome.
The case was forwarded to the Chief Justice by Supreme Court Registrar Bernard Kasavuli on Monday, March 6.
Kasavuli directed that the Chief Justice select a bench to hear and determine the matter.
Under the proposed NSSF Act, Kenyan workers are required to pay Ksh2,160 towards their retirement pension scheme.
This is a significant increase from Ksh200 which is currently being deducted toward the scheme.
On February 5, the Court of Appeal gave NSSF a green light to roll out the increased deductions.
Justices Hannah Okwengu, Mohamed Warsame and John Mativo, while delivering the ruling, determined that the Act was subjected to public participation as required by the constitution.
Aggrieved by the ruling, the County Pensioners Association (CPA) moved to the Supreme Court to challenge the ruling.
In their petition, the group argued that the increased deductions would bankrupt the pensions industry in Kenya.
They pleaded with the Supreme Court to bar the NSSF Board of Trustees, the Retirement Benefits Authority and the Federation of Kenya Employers (FKE) from effecting the changes.
The increase of NSSF deductions is in line with Ruto’s manifesto of increasing pension contributions.
On September 25, 2022, Ruto supported the idea of increased contributions arguing that it would give Kenyans a dignified retirement.
“The meagre current contribution of Ksh200 per month adds up to Ksh72,000 over 30 years. There is no rate of return on earth that can grow this into an adequate pension,” the President stated at the time.
