• Atwoli further clarified that the union does not have any active case against NSSF in court.
• He added that the NSSF did not have a substantive managing trustee who would have overseen the implementation of the act.
Image: MATHEWS NDANYI
The Central Organisation of Trade Unions in Kenya has supported the increment of NSSF deduction from Sh200 to 6 per cent of the gross salary earned as captured in the NSSF Act.
In a statement on Tuesday, COTU secretary general Francis Atwoli said the Sh200 deduction is the lowest in East Africa and critically inadequate.
"We fully support the increment in NSSF deduction from the current Sh200 to a 6 per cent rate. This increase has been long overdue considering it is not just the lowest in East Africa but also has been in COTU's view," he said.
He said that COTU participated in the formation of the NSSF Act and it must champion and advocate for the expansion of social protection.
"Coming up with a worker-friendly NSSF Act, must champion and advocate for the expansion of social protection and or retirement benefits, first, horizontally to increase the coverage to include the jua kali sector and the rate to realize adequacy for a retirement benefit," he said.
Atwoli further clarified that the union does not have any active case against NSSF in court.
"COTU, had, however, in 2014 filed a case seeking an order to suspend the implementation of the NSSF Act of of 2013 for two reasons, workers through COTU were not represented in the NSSF board," he said.
He said the union withdrew the case against NSSF in October 2020 after the two issues were resolved.
COTU said the 6 per cent increment is for the benefit of the workers.
“For instance, a worker who has worked for 30 years being deducted Sh200 monthly can only take home Sh144,000 (subject to inflation) upon retirement. Such an amount ultimately leaves retirees exposed to old-age poverty,” Atwoli said.
“On the other hand, a worker earning Sh50,000 a month and having worked for 30 years being deducted 6 per cent with an equal top-up from the employer will take home Sh2.1 million (subject to inflation) upon retirement.
He called on Kenyans to fully embrace the 6 per cent rate as it is within the law and also of great benefit to them upon retirement.