The National Social Security Fund (NSSF) has dismissed claims that employers and employees should revert to the previous KSh200 monthly contribution, despite the Court of Appeal ruling that the NSSF Act, 2013, is unconstitutional.
In a notice on June 5, NSSF stated that the ongoing court proceedings do not affect the contribution rates currently being implemented under the fourth year of the phased contribution schedule outlined in the NSSF Act.
“We advise all employers, employees and stakeholders to disregard the misleading opinions alluding to reverting contributions to Ksh.200 and to remain steadfast as we allow the Court of Appeal to give directions on the issues that are still pending determination and which do not affect the enhanced contribution rates,” read part of the statement.
NSSF Defends Higher Contribution Rates, Cites Better Retirement Benefits
NSSF noted that the Court of Appeal judgment delivered on February 3, 2023, did not invalidate the Act and that the law remains operational.
The Fund stressed that employers and employees must continue to comply with the existing contribution structure to avoid penalties and safeguard workers’ retirement benefits.
The pension scheme defended the higher contribution rates, arguing that they are necessary to address widespread old-age poverty in Kenya.
According to NSSF, only about 20 percent of Kenyan workers have a retirement savings plan, while many elderly citizens continue to struggle with poverty due to inadequate savings accumulated during their working years.
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The Fund said the previous contribution model, where employees contributed KSh200 and employers matched the amount, resulted in insufficient retirement savings.
Under the current framework, workers save more, with employers continuing to match their contributions, leading to improved retirement benefits.
NSSF further revealed that its asset base had grown to approximately KSh715 billion as of March 30, 2026, an increase it attributed to stronger member contributions and growing public confidence in the scheme.
Also Read: NSSF Issues Guidelines on New Ksh5,940 Pension Deductions From February 2026
Court of Appeal Ruling
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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