The government is in talks with relevant stakeholders before formalizing increment in monthly contributions to the National Social Security Fund (NSFF) from Ksh 200 to Ksh 1,080.
The state has been embroiled in a dispute with workers’ unions among them Central Organization of Trade Unions (COTU) and the Federation of Kenya Employers (FKE) over the enhanced retirement deductions.
In a proposal through the NSSF Act 2013, the government seeks to raise pension contributions with an aim of 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.
According to Central and Eastern regional NSSF manager Hilary Mwaita, while a section of workers across the country have been voluntarily making the proposed contributions, there was need for the government to engage all workers to ensure enough public participation.
Speaking at an event when Del Monte Kenya Limited honoured its 21 employees with long service awards in recognition of their exceptional service, Mwaita called on Kenyan workers to invest in their future after work by making the monthly contributions.
If implemented, the stalled NSSF Act 2013 will see workers compelled to save more for retirement while employers will face increased compliance costs.