Politics and policy
Signage is put up at the NSSF building in Nairobi. A court has barred
the National Social Security Fund (NSSF) from effecting new rates. PHOTO
| FILE
NATION MEDIA GROUP
By James Kariuki
In Summary
- Justice Ongaya said proceedings of the tripartite meeting and its resolutions should be filed in court by next week when the matter comes up for hearing.
- He also directed that a temporary stay of execution be in place where the parties, employers, the employees and the government will continue making contributions to NSSF as they were before the implementation of the new NSSF Act.
The Industrial Court sitting in Nakuru has directed
Labour Cabinet Secretary Kazungu Kambi to convene a meeting with workers
unions and the National Social Security Fund over controversial new
rates.
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Justice Byrum Ongaya on Thursday said the meeting should
look into ways of seeking an amicable solution to multiple suits pitting
workers and employers against NSSF over newly increased statutory
deductions set to take effect starting July 1.
Justice Ongaya said proceedings of the tripartite
meeting and its resolutions should be filed in court by next week when
the matter comes up for hearing.
He issued the directions in a case in which the
Kenya Plantations and Agricultural Workers Union (KPAWU) sought a stay
of execution of the new NSSF Act saying some of its provisions offended
the constitution.
Justice Ongaya also directed that a temporary stay
of execution be in place where the parties, employers, the employees and
the government will continue making contributions to NSSF as they were
before the implementation of the new NSSF Act.
KPAWU says that among the offending sections is
Section 19(1) of the NSSF 2013 Act, which provides that every employer
with one or more employees shall register the employees with NSSF. This
will enable the employer access public services.
KPAWU also contended that it was wrong for the
government to pressure workers to provide social support to all Kenyans
while it was the government’s duty to bear the burden.
“The petitioners feel that employers should not be
forced to contribute to the fund as it should be a voluntary activity.
So they fear that if allowed, the new scheme could cripple the old
social security system,” he said.
On its part, NSSF represented by Lawyer Fred Ngatia
sought for more time to consult on the matter and also have 27 civil
suits filed against the new rates be consolidated to ensure the decision
reached is enforceable and does not raise conflict.
Justice Ongaya ruled that issues raised were of a
serious nature that raised arguable legal points on whether the NSSF
Act, 2013 is constitutional or not.
How much will you pay NSSF? Find out with our handy NSSF rates calculator.
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