Moses Kuria, an advisor on economic matters to President William Ruto, has expressed concerns about the potential impact of the proposed increase in the National Social Security Fund (NSSF) that is set to begin in February 2025 on Kenyans.
Speaking during an interview on local TV on Monday, January 20, 2025, Kuria expressed remorse for Kenyans who will have to dig deeper into their pockets to cover the increased demands for monthly deductions.
The increment is part of a phased implementation of the third Schedule of the NSSF Act, 2013 which provides that the rates of contributions will be progressive from Year 1 of application to Year 4.
The first year saw mandatory contributions increase from a flat rate of Ksh200 for an employee.
Heading into 2025, salaried Kenyans now face higher NSSF deductions as rates double from Ksh2,160 to Ksh4,320 effective February 2025. This comes on the back of an earlier increase from Ksh1,080 in 2023 to Ksh2,160 in February 2024.
With the proposed deduction occurring during tough economic times, Kuria asserts that Kenyans have little choice as the government aims to promote a culture of saving.
Raiding pay slips
“I feel for the payslip people. Paying for the NSSF contribution has gone up. Is it something bad? No, because we can continue as a country that doesn’t have a saving culture. It’s the same payslip we raided to pay for the housing levy and the same we are raiding for the social health plan (SHA), Kuria said.
The former cabinet secretary further urged the media to be at the forefront of advocating the shared burden.
“Let’s not allow the media to continue perpetuating the notion that people are being oppressed. It’s time for all of us to recognize that when we ask for a meal, everyone should eat, and the same applies when we demand fair pay,” Kuria added.
President Ruto in November 2022 suggested the increase on an employee’s retirement saving deductions from Ksh200 to six percent of an employee’s monthly salary.
While defending the proposed increase in the fund, Ruto argued the current rate was too low to sustain better living conditions for workers upon retirement.
Francis Atwoli, the COTU secretary general and former NSSF board member, echoed these sentiments.
Atwoli urged members of the biggest trade organization in Kenya to embrace the new laws saying the changes were within the laws and poised to benefit them upon retirement.
The NSSF Act was originally scheduled to begin in 2014 but faced delays due to various court cases that challenged the new mandatory contributions.
In September 2022, the Court of Appeal granted NSSF approval for the new deductions to take effect.
