NSSF defends contribution rates as court case continues, warns against misinformation
By DMS
The National Social Security Fund (NSSF) has moved to clarify the status of pension contribution rates, insisting that the current statutory deductions remain in force despite ongoing legal proceedings challenging aspects of the law.
In a statement, the Fund reaffirmed that the NSSF Act, 2013 is still operational following a Court of Appeal judgment delivered on February 3, 2023, which allowed the implementation of the law to continue while certain issues remain pending determination in court.
The clarification comes amid growing public debate and claims suggesting a possible reversion of monthly contributions to as low as KSh200 per employee and employer, claims the Fund has dismissed as misleading.
“NSSF Act is still in force on account of the judgement of the Court of Appeal… The issues pending determination by the court do not in any way affect contribution rates,” the statement read in part.
The Fund further urged employers and employees to comply with the current contribution framework, warning that failure to do so could lead to penalties and could deny workers future retirement benefits.
According to NSSF, Kenya’s pension coverage remains low, with only about 20 percent of workers having any form of retirement savings plan. The Fund also warned that old-age poverty remains a major challenge, citing that over 1.2 million elderly Kenyans reportedly struggle with food insecurity while hundreds of thousands live in isolation and poverty.
The institution defended the current contribution structure, arguing that previous low savings levels; sometimes as little as KSh200 matched by employers were inadequate to guarantee meaningful retirement benefits. It said the revised system is designed to strengthen long-term savings and improve dignity in old age.
The statement highlighted recent financial performance, noting that the Fund’s assets had grown to approximately KSh715 billion as of March 30, 2026, though the figure remains unaudited.
It also reported strong investment returns, declaring net returns of 11 percent in the 2023/2024 financial year and 17 percent in 2024/2025.
NSSF Managing Trustee and CEO David Koross reiterated the institution’s commitment to safeguarding members’ contributions and complying with court directives while maintaining enhanced contribution rates.
He urged stakeholders to disregard what he termed misinformation circulating in public discourse and to allow the courts to determine the outstanding legal issues without disrupting the current contribution framework.
The Fund maintained that the reforms under the NSSF Act are aimed at expanding retirement security and aligning Kenya with regional peers that have higher levels of pension savings.
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