A pensioners’ lobby group, County Pensioners Association, has filed a petition of appeal at the Supreme Court challenging Court of Appeal’s decision that allowed the government’s bid to increase monthly contributions to the National Social Security Fund (NSSF) ten-fold from Sh200 up to Sh2,068.
The group says the appellate court erred in its ruling that paved way for the implementation of the NSSF Act 2013.
The disputed ruling dated February 3, 2023, boosted President William Ruto’s social security plan, which includes increasing the NSSF monthly contributions.
According to the group, the Court of Appeal misinterpreted and misapplied various provisions of the Constitution when allowing an appeal lodged by NSSF Board against the decision of the Employment and Labour Relations Court to quash the Act.
Pending the hearing and determination of the petition, the group wants the government stopped from enhancing the monthly NSSF contributions.
It wants the court to issue orders suspending the implementation of the decision by the Appellate Court and eventually declare that mandatory contributions to NSSF are unconstitutional.
In its filings, the group says implementation of the Act has ramifications and that it poses a serious threat of monopoly and emasculation of the entire pensions industry. They say there is a threat of mass transfers of employees from other ‘superior’ pension schemes to the NSSF.
“The ordered functioning of the pensions industry will suffer enormous and irreversible chaos, harm, and damage should the government, trade unions and Federation of Kenya Employers implement the disputed Act—as they have scheduled to do—before the full hearing and final determination of the Applicant’s appeal to this Court,” says the group.