President William Ruto has defended plans for higher National Social Security Fund contributions, stating that employees and employers will each pay 6 per cent of monthly wages. His comments follow a Court of Appeal ruling that upheld the unconstitutionality of the NSSF Act, 2013.
Speaking on Saturday, June 13, in Kakamega during the launch of Shirikiana Sacco, Ruto said the government had agreed with employee representatives on the new rates to boost national savings. He noted that NSSF assets had grown from KSh312 billion to KSh670 billion in two years and projected KSh1 trillion by 2027.
The remarks come after the Court of Appeal on May 29, 2026, dismissed an application to suspend a judgment declaring the NSSF Act, 2013, unconstitutional. Despite this, the NSSF and the Federation of Kenya Employers have directed employers to continue deducting at the enhanced rates.
Law Society of Kenya President Charles Kanjama warned on the same day that employers risk legal action if they continue the higher deductions without a valid basis. He said employers must revert to the previous KSh200 monthly rate or obtain employee consent.
