Employers Give Way Forward on NSSF Deductions After Court Ruling

Jukwaa

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The directive comes a fortnight after a Court of Appeal dismissed the NSSF's application seeking to suspend a judgment declaring the NSSF Act, 2013, unconstitutional.

In a statement on Friday, June 12, FKE said employers should maintain the current deduction and remittance because the legal dispute surrounding the NSSF Act, 2013, has not been conclusively resolved.

"FKE advises members that since the matter has not been conclusively determined in the Court of Appeal, it would be prudent for them to continue deducting and remitting the new rates prescribed by the NSSF Act, 2013," FKE stated.

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The Federation noted that reverting to the old system, where employees were deducted Ksh200 per month , could create additional legal and administrative challenges for employers and workers alike.

"Reverting to pre-2013 rates at this stage will cause more problems for employers. FKE respectfully urges the Court of Appeal to clear the air on this contentious ruling," the Federation stated.

FKE further urged employers to keep proper records to show that they acted cautiously and in good faith and complied with the current NSSF contribution framework pending the court's final judgment.

The employers' body noted that the latest appellate court ruling delivered on May 29, 2026, created uncertainty among employers, employees and payroll managers over the contribution rates that should be applied.

The judges ruled that NSSF had failed to demonstrate that denying the stay order would cause irreparable harm to the pension sector, despite raising arguable legal grounds in its appeal.

The court further observed that NSSF did not provide sufficient evidence, including audited financial statements and actuarial reports, to prove that invalidating the law would disrupt pension operations or create financial instability.

📰 Source: Kenyans.co.ke

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