NSSF sued over domestic workers’ pension directive

NSSF Managing Trustee Tom Odongo speaks during a press conference at his office in Nairobi last month. FILE 

By GALGALLO FAYO 

In Summary

• NSSF had announced plans for a door-to-door campaign to register the workers, including househelps and farmhands, who are not yet captured by the social security scheme.
• On Monday, the Urban Tenants Association of Kenya (UTAK) moved to court to challenge the move, saying it infringed on the privacy of tenants.

The National Social Security Fund (NSSF) faces a legal battle in its bid to enlist domestic workers to its old age benefit schemes without the blessings of families that employ them

The Fund had announced plans for a door-to-door campaign to register the workers, including househelps and farmhands, who are not yet captured by the social security scheme.
 

On Monday, the Urban Tenants Association of Kenya (UTAK) moved to court to challenge the move, saying it infringed on the privacy of tenants and may be taken advantage of by criminals.

“The intended action is not supported by any law and/or court order and is thus unlawful as it seeks to violate protected rights,” said UTAK secretary-general Ephraim Murigo. The association is asking the High Court to issue a temporary injunction restraining NSSF from “conducting door- to- door inspection.”

NSSF last month announced that it would raid residential areas and other estates to identify house helps, gardeners, drivers and even herd boys who would not have been registered.

NSSF said defaulters would come to terms with the 2009 Kenya Gazette notice that required employers of domestic workers to remit statutory deductions for them, including the Sh200 per month for NSSF and Sh320 per month for the National Hospital Insurance Fund.

It said those not remitting the contributions would be charged interest of five per cent per month from June 30 when the waiver for voluntary registration ends.

(Read: Families risk fine over househelp dues)

 

NSSF also said employers who remit the Sh400 for each domestic worker this month would get an amnesty on all outstanding contributions. The money is to be paid directly to the Fund’s accounts or through mobile phone money transfer services.

UTAK says NSSF has not outlined the procedure for the door-to-door campaign nor assured the owners of the houses targeted of the safety guidelines.

Mr Murigo, in a sworn affidavit says the NSSF should publish in newspapers photographs of its staff who will carry out the search. It should also give a legal undertaking to compensate any person who will suffer loss or damage occasioned by the exercise exposing tenants to risk.

Mr Murigo said there were lesser intrusive methods of enforcement available to NSSF other than door-to-door campaigns.

NSSF had said the inspection would be undertaken by compliance officers who will be recognised from their NSSF official uniforms and staff identity cards. About 107,000 domestic workers are expected to benefit from the initiative meant to fulfil article 43 of the Constitution which requires all employees to have social security.

The Economic Survey 2013 says the number of registered workers in the domestic sector rose from 105,000. Out of this 65,000 were female workers and 42,000 male workers. The survey notes that the domestic workers were largely female comprising 60.7 per cent.

The contribution of Sh400 was to be shared equally between the employer and the employee. Households, however, are finding it difficult to register the employees many of who are engaged on not essentially cash considerations.

The industry is also characterised by high mobility, which would provide a logistical nightmare for both contributors and administrators.

NSSF Managing Trustee Tom Odongo said the cover will enable the househelps access a number of statutory benefits and grants including the age, invalidity and survivors benefits; affording them equal dignity to formal sector workers in their old age.

According to lawyers Evans Monari and Shitul Shah, NSSF is not by law empowered to search private dwellings where no business or trade is carried out.

The two lawyers commenting in Daily Nation on Monday said any inspection of such premises would be illegal and unconstitutional since it would infringe on people’s privacy.

The lawyers further say the NSSF Act excludes casual workers from submitting minimum contributions and that only domestic workers who are on full time employment falls under this category.