Employers want the proposed increase in the National Social Security Fund (NSSF) contributions spread over  five-years, even as they call for more consultation.

The Federation of Kenya Employers (FKE) says this will enable employers and employees adjust to accommodate the new rates, further adding that it should be effected based on “statutory minimums.”

This comes as the government continues to push for an increase on the monthly contributions through the NSSF Act.  It seeks to raise this from the Sh200 flat rate to six per cent of an employees earnings, with the employer matching the same.

The High Court in September stopped the move saying it was not subjected to public participation in breach of the Constitution— which demands community input on major decisions.

“The recent decision by the Court gives all stakeholders the opportunity to go back to the drawing board by holding consultative engagements to reach win-win proposals,” national president Habil Olaka said.

The government has appealed the court decision with President William Ruto  keen to change what he terms a “poor saving culture.”

While FKE says it supports the planned increase, it said the government should not rush it without addressing public concerns.

The NSSF issue has been in court since 2014 as stakeholders in social security matters raised issues on how the NSSF Act 2013 will be implemented.

The higher pension contributions, according to the State, will help NSSF build a bigger retirement fund, which will see retirees earn more in monthly stipends, as opposed to the current one-off payment.

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