The National Social Security Fund (NSSF) has clarified that the current pension contribution rates remain legally in force despite ongoing court proceedings, urging employers and employees to maintain compliance and disregard claims suggesting a reversion to lower contributions.
In a statement, Chief Executive Officer (CEO) David Koross said the NSSF Act, 2013, remains operational following a Court of Appeal judgment delivered on February 3, 2023, and that issues still pending before the court do not affect the enhanced contribution rates currently being implemented under the law.
“This is to clarify to our members and stakeholders that the NSSF Act is still in force,” Koross said, adding that “the issues pending determination by the Court do not in any way affect contribution rates by employers and employees.”
Koross reminded employers and workers to continue remitting contributions in accordance with the law, warning that failure to do so could attract penalties and deny workers benefits that have already accrued.
“All employers and workers are reminded to comply to avoid denying their employees a benefit that has already crystallised and unwarranted penalties,” he said.
The Fund defended the enhanced contribution framework, arguing that it is necessary to strengthen retirement savings and address old-age poverty.
According to the NSSF, only 20 per cent of Kenyan workers currently have a retirement savings plan, while many elderly citizens continue to struggle financially due to inadequate savings accumulated during their working years.
“Kenyan workers need to know that their employers match what they save,” Koross said. “The NSSF Act 2013 is progressive and has facilitated increased savings resulting in increased benefits to members.”
It further revealed that its assets had grown to approximately Sh715 billion as of March 30, 2026, reflecting what it described as growing confidence among employers and workers. NSSF also reported a net return of 11 per cent to members in the 2023/2024 financial year and 17 per cent in the 2024/2025 financial year.
Koross reaffirmed the Fund's commitment to protecting members’ savings and ensuring sustainable returns, while urging stakeholders to ignore misinformation regarding pension contributions.
“We advise all employers, employees and stakeholders to disregard the misleading opinions alluding to reverting contributions to sh200 and to remain steadfast as we allow the Court of Appeal to give directions on the issues that are still pending determination,” he said.
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