The Federation of Kenya Employers (FKE) has advised employers to continue remitting National Social Security Fund (NSSF) contributions at the current statutory rates, despite the latest Court of Appeal ruling.
In a statement on June 12, FKE stated that employers can continue deducting and remitting the revised rates provided under the NSSF Act, 2013, while maintaining proper records and documentation to demonstrate compliance undertaken in good faith pending the final court decision.
“FKE advises members that since the matter has not been conclusively determined in the Court of Appeal, it would be prudent for them to continue deducting and remitting the new rates prescribed by the NSSF Act, 2013. It would also be advisable to keep records and correspondence showing that the Employer is acting under caution pending final determination by the Court of Appeal,” read part of the statement.
The federation has, however, called on the Court of Appeal to expedite determination of the matter to provide clarity and restore stability in the labour sector.
FKE Urges Compliance With Current NSSF Rates Pending Final Court Decision
FKE noted that since the Court of Appeal has not yet issued a final determination in the matter, employers face uncertainty over whether to apply the revised NSSF rates under the 2013 Act or revert to the earlier capped contributions of KSh 200 per contributor per month.
The employers’ body warned that reverting to the old rates at this stage could create further complications for employers and destabilize payroll systems across the country.
It stated that NSSF is still pushing for deductions based on 6 percent of pensionable earnings under Tiers I and II, while some stakeholders still refer to the pre-2013 contribution framework.
FKE further stated that retirement security remains a critical concern, noting that employer contributions under the current framework are an important long-term benefit for workers who expect improved pension outcomes after retirement.
Also Read: NSSF Clarifies Reports That Salaried Kenyans Will Revert to KSh200 Monthly Deductions
It also pointed out that many collective bargaining agreements had already adjusted gratuity provisions in anticipation of the operationalization of the NSSF Act.
Further, employers observed that the most recent ruling delivered on May 29, 2026, in the case involving the NSSF Board of Trustees and Kenya Tea Growers Association (KTGA) among others, dealt with an application for stay of execution of an Employment and Labour Relations Court judgment pending the hearing of the substantive appeal.
FKE said the labour sector remains in a state of confusion following years of litigation over contribution rates and the constitutionality of the Act, noting that conflicting court orders, shifting compliance timelines and varying interpretations have created operational challenges for employers over the past 12 years.
Also Read: EXPLAINED: How New NSSF Deductions Will Affect Kenyan Pay Slips Starting February 2026
What The Court Ruling Said
In a ruling delivered on May 29, 2026, the Court of Appeal found that NSSF did not sufficiently demonstrate that denying it a stay order would result in irreversible damage to the pension system.
The court observed that although the Fund had raised substantial legal questions, this alone was not enough to warrant halting the implementation of the High Court decision.
NSSF had contended that striking down the 2013 law could destabilize pension contributions, disrupt the Haba na Haba savings programme, create uncertainty among members, and complicate the management of billions of shillings in retirement funds.
However, the appellate court held that these concerns were not backed by sufficient evidence.
It further noted that the Fund did not submit audited financial statements or actuarial reports to substantiate claims of possible operational or financial disruption.
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