Ruto Dragged to Court Over New NSSF Deductions

The war between President William Ruto and the Judiciary is far from over after a petition was filed against the new National Social Security Fund (NSSF) deductions. 

In court papers submitted to the High Court in Milimani, John Maina Ndegwa, an Advocate, said that the contribution rates were unreasonable citing the already high cost of living. 

The lawyer went on to note that Kenyans had already faced difficulties in coping with a series of statutory deductions imposed by the government.

As such, he requested the High Court to intervene and save employed Kenyans from what he termed as immense suffering posed by the deductions.

He also requested that the case be certified as urgent.

“The application attached and filed herewith to be of uttermost urgency requiring to be placed before the Honorable Judge on priority basis for the reason that the 3 respondent has placed notices in Newspapers having wide circulations on 12th January 2024,” the petition read in part.

“The employees continue to suffer due to the ever-increasing high cost of living with minimal earning capacity and unless this honorable court intervene the employed cadre of Kenyans will continue to suffer immensely.”

In his petition, John Maina named the Cabinet Secretary in charge of Labour and Social Protection Florence Bore and the Board of NSSF as respondents in the case.

The petition followed an announcement by NSSF notifying all employers of the new rates set to take effect in February 2024.

Under the new rates, workers will pay between Ksh420 and Ksh1,740 after the revision.

Each contribution, according to the announcement, will be matched by the employer as well.

Also Read: Court Gives Direction on New Health Fund Amid Ruto’s Onslaught

New NSSF rates spark jitters

The rates will remain in place until the next review in January 2025 when the next review will be announced.

“Remittances to the Fund should be made by the 9th day of each subsequent month. Employers should not hesitate to reach out to the Fund for any clarification,” added the statement.

These deductions will add to other statutory requirements including the contentious Housing Levy which is still in place despite a ruling that declared it unconstitutional.

Also Read: NSSF Announces Higher Deductions for Employees

In addition, the current employee is required to remit a portion of the monthly income to the National Health Insurance fund, and the PAYE tax.

The fate new Social Health Insurance Fund that introduced new rates will be determined in a ruling by the Court of Appeal scheduled for Friday, January 19.

The deductions have since sparked jitters among some Kenyans who complained of continued targeting of their wallets despite the high cost of living and inflation.

Several active cases are in Court, sparking attacks from Ruto, accusing the judiciary of undermining his administration.