NAIROBI, Kenya, June 7 – The Central Organization of Trade Unions (Kenya) (COTU) has urged workers and employers to continue remitting enhanced National Social Security Fund (NSSF) contributions, insisting that the contribution framework under the NSSF Act, 2013 remains valid despite a recent Court of Appeal ruling.
In a statement issued on Saturday, COTU Secretary General Dr. Francis Atwoli said Kenyan workers would continue contributing under the enhanced rates provided for in the NSSF Act, arguing that the law remains enforceable following an earlier Court of Appeal judgment delivered on February 3, 2023.
The workers’ union expressed concern over a recent court decision, saying it appeared to contradict the 2023 ruling and had created uncertainty within the pension sector.
“As Kenyan workers, we shall continue contributing under the enhanced contribution framework provided for under the National Social Security Fund (NSSF) Act, 2013, which, in our view, remains valid and enforceable,” Atwoli said.
COTU questioned how the Court of Appeal could issue orders on what it described as a matter that had already been conclusively determined through the substantive judgment delivered in February 2023.
According to the union, an application for stay of execution filed in October 2022 had effectively become irrelevant once the court delivered its final judgment on the appeal.
“In law and procedure, once the Court pronounced itself on the substantive appeal, any interlocutory application associated with that appeal became spent and incapable of sustaining further judicial action,” the statement said.
The union further argued that the Supreme Court, when handling a subsequent appeal, did not revive the earlier application but instead referred specific substantive issues back to the Court of Appeal for determination.
COTU called for clarification on the matter, saying workers, employers, pensioners and the public deserved a clear explanation due to the significance of retirement savings.
Despite the legal uncertainty, the union maintained that employers should continue complying with the existing contribution requirements and remitting deductions to the NSSF.
The labour body also urged the NSSF to strengthen its compliance mechanisms to prevent employers from taking advantage of the ambiguity surrounding the court rulings.
“Employers should continue complying with the law by remitting the required contributions, and we call upon the NSSF to heighten its compliance mechanisms to ensure some employers do not take advantage of this ambiguity,” Atwoli said.
The latest developments add to ongoing legal and policy debates surrounding the implementation of the NSSF Act, 2013, which significantly increased contributions from both employers and employees as part of efforts to boost retirement savings among Kenyan workers.
