The National Social Security Fund (NSSF) has disputed reports alleging that the monthly deductions by Kenyan employers would increase from Ksh1,080 to Ksh2,160.
The reports alleged that the government would start effecting the new deductions, targeting workers earning a monthly salary above Ksh36,000 in January 2024.
Further, the reports alleged that the monthly contributions would increase annually until the fifth year.
“If you earn more than Ksh36,000 per month. Gross, your NSSF deduction is about to go up from Ksh1,080 per month to Ksh2,160 in Year 2 which begins this month. The deductions will increase each year till year 5,” the reports which have since been flagged as false indicated.
NSSF CEO David Koros speaking during breakfast meeting held at the Sarova Panafric Hotel on August 15, 2023.
NSSF, however, clarified the issue, assuring Kenyans that no communication has been made about the new rates.
“Please be guided that this is misleading. NSSF has not communicated any deduction progression based on the new rates,” NSSF stated.
“We shall provide official communication regarding NSSF reductions. Employers and members shall be guided accordingly when the progression period falls due.”
President William Ruto’s administration has been eyeing to create a culture of savings to create long-term investment and subsequently boost the country’s growth.
Through NSSF contributions, the government is eyeing to raise over a trillion from the NSSF by 2027.
Currently, NSSF collects approximately Ksh4 billion monthly from the registered members. This translates to an annual collection of Ksh48 billion.
Previously, the Fund would collect an average of Ksh14 billion yearly, indicating a significant rise in revenue collection.
President Ruto’s administration is also seeking to grow the number of registered members from the current 2.9 million to over 18.3 million Kenyans working in both the formal and informal sectors.
A photo of sample Kenyan currency notes.