Court of Appeal Clears NSSF Deduction Confusion

Jukwaa

🇰🇪 Breaking It Down

In a fresh decision, the three-judge bench acknowledged that its May 29 ruling was issued in error after it inadvertently determined an application that had already been overtaken by events.

The judges, during the ruling delivered on Friday, June 26, said the mistake arose because several applications had been filed in the same appeal, leading the court to rule on the wrong matter.

"We, therefore, find that the ruling erroneously delivered by this Court on 29th May 2026 is amenable to setting aside in the interests of justice, and we accordingly set aside the said ruling in its entirety," the bench ruled in the court documents reviewed by Kenyans.co.ke .

📌 What You Need to Know

The latest decision means there is currently no valid Court of Appeal ruling either allowing or rejecting NSSF's request to suspend the earlier Employment and Labour Relations Court (ELRC) judgment that declared the NSSF Act, 2013, unconstitutional.

Instead, the legal position reverts to where it stood before the May 29 ruling as the appeal continues through the courts.

The Court explained that the only application that was actually pending before it was one filed by the Kenya Export Floriculture, Horticulture and Allied Workers Union seeking to be enjoined in the case.

Judges noted that allowing the erroneous ruling to stand would undermine public confidence in the administration of justice since the parties had not been heard on the application that was mistakenly determined.

The court has now scheduled July 3, 2026, to deliver its ruling on the union's application before the main case proceeds.

The latest development comes weeks after NSSF directed employers to continue deducting and remitting contributions under the current enhanced rates despite the earlier Court of Appeal ruling.

📰 Source: Kenyans.co.ke

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