The government’s intention to raise more revenue through The National Social Security Fund hit a block on Monday after Laywer Ndegwa Maina moved to court to stop the increased deductions expected to be rolled out in February 2024.
In a petition filed at the High Court, Ndegwa sought to have the case certified as urgent.
Ndegwa listed top officials in President William Ruto’s government as respondents including; Labour Cabinet Secretary Florence Bore and Social Protection Principal Secretary Joseph Mogosi Motari.
Others listed as respondents include; the NSSF Board and Attorney General Justin Muturi.
“I Maina Ndegwa do certify the application attached and filed herewith to be of uttermost urgency requiring to be placed before the Judge on a priority basis for the reason that the third respondent (NSSF Board) has placed notices in newspapers having wide circulations on January 12, compelling all employers to implement the Year 2 Contribution Rates 2024,” the petition read in part.
Ndegwa in his petition stated that the Year 2 Contribution Rates 2024 were colossal and unreasonable.
He argued that it was wrong for the government to increase deductions at a time when many Kenyans were struggling with the high cost of living.
Ndegwa further told the High Court that salaried Kenyans were already burdened by other statutory deductions.
“Burdened Kenyans have minimal earning capacity and unless this honourable court intervenes, the employed cadre of Kenyans will continue to suffer immensely,” he told the Milimani-based court.
Should the High Court dismiss Ndegwa’s petition, Kenyans will pay between Ksh420 and Ksh1,740 in the new deductions.
This is due to the implementation of the 3rd Schedule of the NSSF Act Cap45 of 2013, which gradually raises the mandatory pension contributions by employees based on the earning limits.
Contributions will increase over a five-year period from an initial increased flat rate of Ksh200 per employee to a graduated plan of a deduction of six per cent of an employee's salary.
