NSSF Suffers Fresh Setback Over Directive for Higher Deductions

Jukwaa

🇰🇪 Breaking It Down

In a notice dated June 5, 2026, NSSF directed employers to continue remitting contributions per the Act, insisting that the law remains in force until the ongoing legal issues are addressed.

However, the directive has now been challenged in court by the Consumers Federation of Kenya (COFEK), which argues that the notice is unlawful and amounts to an attempt to bypass existing court orders.

The petition filed on Monday, June 15, under a certificate of urgency, seeks the court’s intervention to stop the implementation of the notice and clarify the legal status of the deductions.

📌 What You Need to Know

According to court documents seen by Kenyans.co.ke , COFEK argued that NSSF’s notice improperly influences employers by directing them to continue making deductions under a framework whose legality remains contested.

"The impugned notice has the effect of influencing and directing the conduct of employers in relation to statutory deductions, thereby affecting millions of Kenyan workers and contributors on a recurring monthly basis," COFEK argued.

In its application, COFEK claimed that the directive violates several constitutional provisions and undermines judicial authority by communicating a position on a matter that is still before the court.

They also argued that the advisory creates uncertainty for employers and employees who must comply with statutory obligations while awaiting definitive judicial guidance.

At the centre of the dispute is the interpretation of a Court of Appeal ruling dated May 29, 2026, which dismissed NSSF's application to suspend a judgment that declared the 2013 Act unconstitutional.

The ruling came as a major reprieve for most employees who anticipated lower deductions, but despite the ruling, the Fund maintained that the enhanced rates remain valid until the legal matter is fully determined.

📰 Source: Kenyans.co.ke

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