Atwoli Warns Against Politicising Doubled NSSF Deductions
Atwoli went on to water down the criticism directed at the new NSSF rates, especially within the political sphere, with accusations that leaders are misinforming the public.
Marvin Chege 
Central Organization of Trade Unions (COTU) Secretary General Francis Atwoli on Tuesday, February 4 praised the doubling of National Social Security Fund (NSSF) deductions, denying claims that it was straining workers financially.
In a statement, the vocal trade unionist emphasized that the National Social Security Fund (NSSF) Act of 2013 plays a vital role in guaranteeing Kenyan workers a dignified retirement with financial stability.
Atwoli went on to water down the criticism directed at the new NSSF rates, especially within the political sphere, with accusations that leaders are misinforming the public.
NSSF offices in Nairobi. /FILE
"The Central Organization of Trade Unions (Kenya), COTU (K) has noted with concern the misinformation and political narratives surrounding the continued implementation of the National Social Security Fund (NSSF) Act of 2013. As the voice of Kenyan workers, we affirm that the full implementation of this Act is not only beneficial but necessary for securing workers' financial futures," Atwoli argued, asserting that NSSF was not a tax.
"First and foremost, it is critical to clarify that NSSF is not a tax. NSSF is a structured mandatory savings mechanism aimed at ensuring that workers retire with dignity. Unfortunately, most of those politicizing NSSF enjoy a superior pension or are assured of income streams through the numerous business ventures that they own."
"As such, any attempts to politicize or misrepresent the revised NSSF contribution rates, which were legally enacted in 2013, only serve to mislead the public, hinder compliance, and jeopardize workers' long-term financial security," he continued.
The COTU boss further outlined that Social Security is a fundamental human right which exists to protect individuals against life’s uncertainties, including old age poverty.
As such, he called on the government and employers to uphold and enhance social security measures rather than undermine them.
"The International Labour Organization (ILO) Convention No. 102 (1952)establishes minimum global standards for social security, while Kenya’s Constitution (2010), under Article 43, explicitly guarantees every citizen the right to pension and social security. It is, therefore, the duty of the government, employers, and all players to uphold and enhance social security measures, including strengthening NSSF.
"As COTU (K), we hold the view that if ANYONE genuinely care about workers, they should fully support NSSF in its mission to eliminate old-age poverty by ensuring that every Kenyan saves for retirement. A well-structured pension system provides both a lump sum payout and a monthly pension, enabling retirees to maintain a decent standard of living. The ILO recommends that retirees should receive at least 40–60% of their pre-retirement income, which underscores the importance of strengthening NSSF as a mandatory savings scheme," added Atwoli.
He noted that Kenya was lagging behind its East African Community (EAC) counterparts in social security contributions, adding that while the NSSF rates in Kenya are set at 12% (6% from the employer and 6% from the employee), Uganda mandates 15% (10% employer, 5% employee), and Tanzania has a much higher contribution rate of 20% (10% employer, 10% employee).
"Kenyan workers must remember that those who support their cause are those who call for a better future for them, most importantly their social protection post-retirement," he continued.
Atwoli's remarks come as Kenyans prepare to receive reduced take-home pay following the government's directive to increase the monthly NSSF contribution from Ksh2,160 to Ksh4,320. The new statutory deductions, set to take effect in February this year, are part of the phased implementation of the NSSF Act of 2013. Under these changes, employed Kenyans will contribute 6% of their salaries.
As per the Act, the lower earnings limit—the minimum pensionable salary—has been increased from Ksh7,000 to Ksh9,000, while the upper earnings limit has risen to Ksh29,000. Employees in this category will contribute higher amounts.
Employers will also be required to match their employees' contributions, meaning the deductions will be based on an individual’s salary.
Although the Act was enacted in 2013, it was only implemented in 2023 after a decade-long legal battle aimed at nullifying it. In 2022, however, the Court of Appeal permitted the government to proceed with its implementation.
The controversy over increased NSSF contributions comes at a time when the government has introduced multiple tax measures further affecting Kenyans' payslips.
The National Treasury introduced the Tax Procedures (Amendment) Bill, the Tax Laws (Amendment) Bill, and the Business Laws (Amendment) Bill in an effort to address the budget deficit caused by the withdrawal of the contentious Finance Bill 2024.
