NSSF Directs Employers to Proceed With New Deductions After Supreme Court Ruling

NSSF building in Nairobi's Upper Hill.
NSSF building in Nairobi's Upper Hill.

The National Social Security Fund (NSSF) will commence with the deduction of new increased rates following the ruling issued by the Supreme Court early this week. 

In a notice issued on Friday, NSSF directed employers to effect the new rates in the February payslips.

According to NSSF, the recent ruling by the Supreme Court, which ordered the case challenging the new rates to be heard again by the Appellate Court, did not bar the body from enforcing the deductions.

"The Supreme Court has not lifted the Court of Appeal Orders delivered on February 3, 2023. Consequently, the National Social Security Fund Act No. 45 of 2013 remains in force.

File photo of Supreme Court of Kenya facade in Nairobi
The front view of the Supreme Court of Kenya building in Nairobi.
Supreme Court

"We affirm the Notice issued to Employers on January 12, 2024, on remittance of NSSF contributions in line with the National Social Security Fund Act No. 45 of 2013. The Fund remains committed to upholding the rule of law and ensuring compliance with all legal obligations while serving the best interests of our stakeholders," read the notice in part.

 Supreme Court directed the petition to be heard afresh after the junior court failed to address various legal quandaries that were raised in the appeal.

"In the circumstances, this case is to be remitted to the Court of Appeal to determine the substantive merits of the Judgment of the ELRC. Due to the nature of the matter, the surrounding public interest and the time taken by the case in the corridors of justice, it is prudent that the matter be heard on a priority basis," read the judgement in part.

Following the directive, employed Kenyans are set to take less money this month. Employers will also be making contributions towards the social security of their employees.

According to the new deductions, Kenyans earning Ksh20,000 will see their deductions increased from the current Ksh1,080 to Ksh1,200.

Those earning  Ksh30,000 will now pay Ksh1,800 from the current Ksh1,080. Those earning between Ksh36,000 to Ksh50,000 will have Ksh2,160 deducted from their salary.

On the other hand, Kenyans earning Ksh100,000 will also have Ksh2,160 deducted from their salary. Currently, they have been remitting Ksh1,080 for their social security.

Below is the comparison between the current and new rates;

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