President William Ruto has suffered a major setback on his plan to offer a ‘decent retirement package’ to employees through NSSF.
This is after the High Court stopped the proposal seeking to increase monthly contributions to the National Social Security Fund(NSSF) from Kshs200 to Kshs2,068 as captured in article 20 of NSSF Act 2013.
High court judges Mathews Nduma, Hellen Wasilwa and Monica Mbaru, invalidated the NSSF Act 2013 that supported the increments saying it was unconstitutional. According to the judges, the Act was not subjected to public participation as the constitution dictates.
President Ruto had argued that the current monthly contribution was very low to save enough money that would provide one with a better life after retirement.
“We are going to implement the new NSSF law once we get it out of court either by settlement or what they have directed. It is not possible for us to continue contributing KSh 200 to NSSF and pretend that we are saving. It is not saving; it is a joke.
“Saving is biblical. The Bible says a good man leaves an inheritance for his children. So for those of you who are believers, you will be fulfilling what the bible says and you could possibly go to heaven,” he said in a meeting with Kenya Kwanza leaders during the weekend.
Aside from the contribution increment, the court also quashed the mandatory registration and contribution by employees, who have alternative pension or social fund schemes, to NSSF
“An order is issued restraining the 1st and 2nd respondents from applying the NSSF Act of 2013 on petitioners, members or any other employees who have adequate alternative pension or social security schemes unless they opt-in.
“An order is issued prohibiting the government from compelling or requiring mandatory registration enrolment or listing of any employer or employee whether registered as a member or any retirement benefit scheme or not to register, enroll or list and contribute their earnings or any party thereof,” the judges ruled.