NSSF old rates still remains

The Petition number 11 of 2014 challenging the implementation of the NSSF Act No. 45 of 2013 came up for hearing at the Industrial Court sitting in Nakuru on 14th July 2014. After deliberations between all the parties including NSSF, it was agreed that  the interim orders issued on 25th June 2014 that barred NSSF from implementing sections 18, 19, 20, and 71 of the Act were extended until the final determination of the petition. This therefore means that employers should continue deducting the old rates until the court directs otherwise.

The Cabinet Secretary for Labour, Social Security and Services was asked to comply with an order to convene a meeting of the tripartite partners within the next 14 days. On the other hand, the Deputy Registrar at the Industrial Court sitting in Nakuru was directed to transfer the file for mention before the Principal Judge at the Industrial Court sitting in Nairobi on 17th July 2014 for further directions.

Following the above outcome, the Federation of Kenya Employers (FKE)  where Kenya Flower Council is a member asked all employers who had their remittances declined by NSSF previously to proceed and make the June remittances based on the old rates.

As you are aware, the NSSF Act was amended early this year pursuant to the government’s commitment to transform the NSSF into a retirement benefits scheme capable of delivering value to members and its transformation into an autonomous pension fund with an increased coverage and range of benefits to its members. The reform of the NSSF is geared towards providing efficient and effective management. The reform of the NSSF is also motivated by the need to align to the new Constitution which guarantees access to social security for Kenyans.

The NSSF Act now makes it mandatory for every employee, above the age of 18, to enroll as a member of NSSF. This will include those serving in the public service alongside other cadres of employees in both the formal and informal sectors.

The NSSF Act was expected to come into effect on July 1, 2014. However, its implementation was stopped following a conservatory injunction issued by the Industrial Court following a petition by a trade union that challenged and objected to its implementation.

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