President William Ruto has recounted how he engaged Central Organization of Trade Unions (COTU) Secretary-General Francis Atwoli, shortly after taking office, as his administration moved to implement higher National Social Security Fund (NSSF) contributions affecting salaried workers.
The NSSF Act, 2013 requires all employees aged 18 years and above who have not yet reached retirement age and are subject to the Employment Act to contribute 6% of their pensionable earnings to the NSSF.
Ruto, who was speaking during a meeting with Bungoma faith leaders on Saturday, May 16, said the discussions took place at State House just days after his swearing-in, as the government pushed for reforms that significantly increased monthly deductions from employees’ payslips.
“We have our savings, NSSF. We used to pay Ksh 200 monthly; the employer pays Ksh 200, and the employee pays Ksh 200, totaling Ksh 400, and someone pockets thousands,” Ruto said.
The Head of State said that Kenya was previously operating a low-contribution pension model that left workers with minimal retirement savings, which he termed unsustainable.
Ruto “Coerced” Atwoli to Allow 6% NSSF Deductions on Kenyan Workers’ Payslips
Over 60 years, he said, Kenya had collected only Ksh 312 billion in NSSF contributions. Upon assuming office, he sought to change the law in 2016 but faced a court challenge, as COTU, led by Francis Atwoli, opposed it.
Ruto disclosed that the proposals faced resistance because Atwoli opposed increasing contributions, insisting they remain at Ksh 200.
He added that efforts to push the reforms eventually faced stronger opposition after Atwoli allegedly joined forces with former President Uhuru Kenyatta to reject the proposed law.
To resolve the stalemate, Ruto met Atwoli at State House to unlock the reforms and convince the long-serving trade unionist that Kenya needed to align with other countries where both employers and employees contribute a percentage of their income.
“I am the current President. I had not even been in office for two weeks when I called Atwoli at the State House. He is a good man because he listened to me. So, I requested him to withdraw the court case,” Ruto said.
“So we agreed with Atwoli, as it is done in Uganda, Tanzania, and many other countries, that an employee pays 6 percent of his or her income, and the employer also pays 6 percent. That money belongs to the contributor.”
Also Read: Breakdown of Monthly NSSF Deductions for Kenyan Teachers As Per Job Group
Ruto Defends NSSF Deductions, Says Kenya Must Boost Savings to Cut Borrowing
Ruto noted that when he assumed office, Kenya was already grappling with high debt levels and was listed among African countries considered at risk of defaulting on obligations.
“We are burdened by debt because we do not have our own savings,” he said, adding that the country must strengthen domestic savings instead of relying heavily on external borrowing.
“So we agreed with Atwoli, as it is done in Uganda, Tanzania, and many other countries, that an employee pays 6 percent of his or her income, and the employer also pays 6 percent. That money belongs to the contributor,” he said.
Also Read: EXPLAINED: How New NSSF Deductions Will Affect Kenyan Pay Slips Starting February 2026
He added that the savings collected over 60 years had doubled within two years under the current arrangement.
Ruto disclosed that NSSF savings stood at Ksh 700 billion by February this year, up from Ksh 312 billion in 2023, with projections to reach Ksh 1 trillion by next year.
He said Kenya would not need to rely on borrowing from China if it strengthened domestic savings.
“We will not be going to China to borrow loans. We go to China to get loans because its savings rate as a percentage of GDP is 55 percent. Their money is in savings, but ours we consume. That is why we are charged high interest rates and struggle to repay loans,” he said.
