Kenya’s pension regulator has instructed employers to continue deducting and remitting enhanced National Social Security Fund (NSSF) contributions, despite a recent Court of Appeal ruling that dealt a blow to the Fund’s legal position.
In a statement issued on Friday, NSSF said the current contribution rates remain valid and enforceable, urging employers and workers not to revert to the older deduction structure of KSh200 from employees and a matching KSh200 from employers.
“This is to clarify to our members and stakeholders that the NSSF Act is still in force on account of the judgment of the Court of Appeal rendered on February 3, 2023,” the Fund said.
The clarification follows growing uncertainty after the Court of Appeal on May 29 declined to suspend a judgment that had declared the NSSF Act, 2013 unconstitutional. The decision raised questions among employers and workers over whether the higher deductions introduced under the law should continue.
NSSF, however, maintained that the legal proceedings currently before the courts do not alter the contribution rates already in place.
“The issues pending determination by the Court do not in any way affect contribution rates by employers and employees, which remain those of the year four cycle in accordance with the Third Schedule of the NSSF Act,” the Fund said.
The appellate judges acknowledged that NSSF had presented issues worthy of judicial consideration. But they ruled that the Fund had not demonstrated that failing to grant a stay order would cause immediate or irreparable harm.
In its application, NSSF argued that setting aside the 2013 law could disrupt pension collections, affect programmes such as the Haba na Haba savings scheme and create uncertainty around the management of retirement savings.
The court was unconvinced. Judges noted that the Fund had not produced sufficient financial evidence, including audited accounts and actuarial assessments, to support claims of potential disruption.
The bench also pointed out that NSSF had successfully operated under the previous legal framework for many years without evidence of systemic failures or governance concerns.
Despite the ruling, the Fund defended the higher contribution rates, saying they are designed to strengthen retirement savings and help reduce poverty among older Kenyans.
NSSF said its asset base had grown to about KSh715 billion as of March 30, 2026, underscoring what it described as its continued commitment to protecting members’ savings while awaiting further judicial directions. Employers are expected to continue remitting contributions at the enhanced rates as the legal battle over the future of the NSSF Act, 2013 moves through the courts.
About the Author
