Members allied to the Kenya Union of Domestic, Hotels, Educational Institutions, Hospitals and Allied Workers (KUDHEIHA) have listed their demands to President William Ruto before agreeing to the proposed increase in National Social Security Fund (NSSF) deductions.
Speaking to the press on Sunday, October 30, KUDHEIHA Secretary General Albert Njeru argued that the proposed 6 per cent contributions were too high for their workers.
He, therefore, demanded that their monthly wages should be doubled from the current Ksh15,200 minimum wage to Ksh30,000.
Njeru further argued that if the deductions took effect immediately, it would leave the workers exposed and vulnerable.
"Our most important issue is that the minimum wage of Ksh15,200 is too small. As workers, we are asking the President to consider increasing our pay to Ksh1,000 per day before raising the NSSF contribution. We want the lowest paid to make Ksh30,000.
"From there, a worker will be able to buy clothes, afford decent food and travel with ease. When you deduct 6 per cent from our pay of Ksh15,200, what will we remain with," he stated.
He further demanded that the workers should be guaranteed that the fund will be well-managed to handle the increased contributions.
Njeru also noted that KUDHEIHA workers needed assurance from the Head of State that Pay as You Earn (PAYE) would not be deducted from their contributions to prevent double taxation later on.
"We also ask that Pay As You Earn (PAYE) should not be deducted from our savings because when we get the money, we shall pay some tax," he added.
In his plan, President Ruto explained that NSSF contributions would encompass both the employed as well as the unemployed.
He argued that Ksh200 monthly contribution was too little to benefit anyone in their old age. He, therefore, sought to have it raised to Ksh2,000.
Ruto explained that the state would match a percentage of an individual's savings to boost the practice.
He further hinted at the Government's intention to start borrowing locally noting that the high interest paid by his predecessors to international lenders could, instead, benefit Kenyan savers.
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