NAIROBI, Kenya, June 10 – The Central Organization of Trade Unions (COTU) has accused sections of the private pension industry of attempting to undermine ongoing reforms at the National Social Security Fund (NSSF) as the fund continues implementing enhanced contributions under the NSSF Act, 2013.
COTU Secretary General Francis Atwoli claimed that some private pension providers are fueling uncertainty around the implementation of the law to protect their commercial interests and retain control over workers’ retirement savings.
According to the trade union body, resistance to the higher NSSF contribution framework is largely driven by concerns that a stronger and more competitive NSSF could attract a larger share of retirement savings currently managed by private pension schemes.
“We have reason to believe that most of the noise currently being generated around the implementation of the NSSF Act of 2013 is not motivated by concern for workers, the sole beneficiaries of the enhanced benefits, but by commercial interests of some private insurance schemes determined to preserve their long-standing dominance over workers’ retirement savings,” Atwoli said.
He argued that some private pension firms have become increasingly uncomfortable with what he described as a better-performing and more competitive NSSF.
The remarks come amid renewed debate over the implementation of the NSSF Act following recent court developments that have reignited discussions on mandatory pension contributions and the role of private retirement benefit schemes.
COTU also criticized employer organizations that have advised members to revert to previous NSSF contribution levels, warning that such actions could deny workers the higher retirement benefits envisioned under the 2013 law.
The union singled out the Agricultural Employers Association (AEA), saying it was inconsistent for employers to oppose enhanced NSSF contributions while continuing to remit Tier II contributions to private retirement schemes established under the same legal framework.
Atwoli cited NSSF’s recent investment performance as evidence of the fund’s growing competitiveness, noting that it delivered returns of about 11 percent in the 2023/24 financial year and 17 percent in the 2024/25 financial year.
COTU maintained that stronger pension contributions are necessary to improve retirement savings and reduce old-age poverty among Kenyan workers.
The union further emphasized that social security is a constitutional right under Article 43 of the Constitution and argued that private pension schemes should complement, rather than replace, the national social protection system.
