NSSF contributions to continue under current enhanced rates despite legal uncertainty - COTU

COTU-K insisted that any ambiguity arising from the ongoing legal process should not disrupt the flow of contributions or undermine workers’ retirement savings.

“As the umbrella body representing Kenyan workers, we wish to inform the public that, as Kenyan workers, we shall continue contributing under the enhanced contribution framework provided for under the NSSF Act, 2013, which, in our view, remains valid and enforceable by dint of the judgment delivered by the Court of Appeal on 3rd February, 2023,” COTU said.

The labour organisation further called on both employers and employees to maintain compliance with the existing contribution structure, warning that failure to do so could weaken retirement savings and undermine the stability of the pension system.

COTU-K also called on the National Social Security Fund to strengthen compliance enforcement mechanisms to ensure that all employers meet their statutory obligations under the Act.

The statement comes amid continued legal and constitutional debate over the NSSF Act, 2013, which has faced court challenges since its enactment. At the centre of the dispute are questions on whether the law complied with constitutional requirements during its passage, including whether Senate participation was necessary in its approval.

In a ruling delivered on May 29, 2026, the Court of Appeal rejected an application by NSSF seeking to temporarily revive aspects of the law while it pursues an appeal. The three-judge bench found that the Fund had failed to demonstrate that denying the application would cause irreparable harm to the pensions sector.

While the court acknowledged that NSSF had raised arguable legal questions, including whether the Employment and Labour Relations Court erred in finding that the Act required Senate participation before enactment, it ruled that merely presenting an arguable appeal was not sufficient to justify a stay.