The Central Organisation of Trade Unions (COTU) has endorsed the increased National Social Security Fund (NSSF) deductions set to take effect this month, emphasizing their long-term benefits for workers. COTU Secretary-General Francis Atwoli has defended the new rates amid public outcry, asserting that the changes are essential for securing workers’ financial futures.
The new NSSF rates mean both employers and employees will contribute more, resulting in reduced take-home pay for salaried workers. However, Atwoli maintains that this should not be viewed as a burden but rather as a crucial investment in workers’ retirement security.
“As the voice of Kenyan workers, we affirm that the full implementation of this Act is essential for securing workers’ financial futures,” Atwoli stated. He emphasized that NSSF is not a tax but a structured, mandatory savings scheme that ensures workers can retire with dignity.
Atwoli also criticized individuals politicizing the deductions, pointing out that many of them already enjoy superior pension benefits or have assured income streams. “Any attempts to misrepresent or politicize the revised NSSF rates—legally enacted in 2013—only serve to mislead the public, hinder compliance, and jeopardize workers’ long-term financial security,” he said.
Citing International Labour Organization (ILO) Convention No. 102 (1952), Atwoli stressed that social security is a fundamental human right designed to protect individuals from old-age poverty. He also referenced Kenya’s Constitution (2010), which explicitly guarantees every citizen the right to pension and social security under Article 43.
“It is, therefore, the responsibility of the government, employers, and all stakeholders to uphold and strengthen social security measures, including NSSF,” Atwoli reiterated. He added that anyone genuinely concerned about workers’ welfare should support NSSF’s mission to eliminate old-age poverty by promoting mandatory savings.
A well-structured pension system, Atwoli argued, provides both a lump sum payout and a monthly pension, allowing retirees to maintain a decent standard of living. “The ILO recommends that retirees receive at least 40-60% of their pre-retirement income, underscoring the need to strengthen NSSF as a mandatory savings scheme,” he explained.
Comparing Kenya with other East African nations, Atwoli noted that Kenya lags behind in social security contributions. While Kenya’s NSSF rates stand at 12% (6% employer, 6% employee), Uganda mandates a 15% contribution (10% employer, 5% employee), and Tanzania requires an even higher rate of 20% (10% employer, 10% employee).
COTU urged workers to disregard opposition to the NSSF Act (2013), warning that such resistance endangers their retirement security. “Kenyan workers must recognize that true allies are those advocating for a better future, particularly their social protection after retirement,” COTU stated.
