Court orders Kambi to convene workers, NSSF meeting over new rates

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.

 

SHARE THIS STORY

0
inShare

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.

READ: Industrial Court stops higher NSSF pension contributions

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.