Taxman to collect NSSF contributions from October 1

 

John Njiraini, KRA Commissioner General. Photo/FILE 

By NATION CORRESPONDENT

 

The Kenya Revenue Authority will start collecting all social security fund contributions from October 1 following a deal between the two organisations.

According to a statement to newsrooms, the partnership will enable the National Social Security Fund (NSSF) to capitalise on KRA’s wide coverage to reach all eligible employers.

“The two bodies will leverage on PAYE and NSSF payroll deductions processes to simplify collection and enhance compliance levels,’ said the joint statement signed by NSSF acting managing trustee Hope Mwashumbe and KRA commissioner general John Njiraini.

Transferring the role of collection of the contributions to KRA is set to ease the burden on NSSF as it will no longer handle auditing and accounting functions, enabling it to focus on administration and investments.

NSSF public relations officer Christopher Khisa said the collaboration will increase coverage of social security in the country.

The deal, he added, would reduce cost of doing business for both the employers and contributors who are required to remit statutory deductions to different government agencies. “All the agents that have been doing collections are going to be redeployed to other stations,” Mr Khisa said.

Federation of Kenya Employers executive director Jacqueline Mugo welcomed the arrangement. She, however, declined to make further comments saying she needed to consult the federation members.

KRA entered into such a deal with the National Hospital Insurance Fund in 2001 and the former Nairobi City Council. The agreement with the council failed as City Hall continued with parallel collection of contributions.