Kenya: Employers Want New NSSF Rates Delayed to Restructure Cash Flows

Nairobi — Employers are now asking for more time before the new National Social Security Fund (NSSF) rates are implemented, to enable them restructure their cash flows.

The Federation of Kenya Employers (FKE) on Friday said additional time will allow employers to accommodate the new changes.

The federation said there is need for more stakeholder engagements, and asked the government to reschedule the implementation date to July 1, 2023.

The Federation’s National President Habil Obaka cited high cost of living, rising interest rates, the war in Ukraine and the prolonged dry weather continue to adversely affect the economic activity in the country.

“We appeal to the government to embrace more dialogue in resolving NSSF issues. Let the parties engage in good faith and get an agreeable way forward that will move the country ahead on the establishment of the universal social protection system in Kenya,” Obaka stated.

He protested the government’s over reliance on taxes from the formal sector to fund its projects, saying the move threatens to overburden the sector that is already shrinking.

“Only 15 per cent of the country’s wage employment is in the formal sector. Formal workers and formal employers should therefore not solely shoulder the government’s burden of funding the universal social protection system,” Obaka added.

The Court of Appeal gave government the go ahead to implement the revised NSSF Act, a move it said will enhance social security protection and increase the adequacy of social security benefits paid out by NSSF.

Some of the members have however appealed the decision at the Supreme Court.