Monthly contributions to the National Social Security Fund (NSFF) will increase five-fold up to Sh1, 080 from July 1 as the Treasury joined out-of-court talks with workers’ unions to resolve a dispute over the retirement deductions.
The stalled NSSF Act 2013 that introduced the changes had also sought to raise monthly contributions from employers to match each employee’s deductions, which have remained at Sh200 monthly.
NSSF managing trustee Anthony Omerikwa said Tuesday that the Treasury was now part of the talks with the Central Organisation of Trade Unions (Cotu) and the Federation of Kenya Employers (FKE). He said the discussions are set to be completed before end of the financial year in June.
The higher pension contributions are aimed at helping NSSF build a bigger retirement pot that will empower the fund to offer workers monthly stipends after their retirement as opposed to the current one-off payment.
