Politics and policy
Labour secretary Kazungu Kambi. PHOTO | FILE | NATION MEDIA GROUP
By LYNET IGADWAH, ligadwah@ke.nationmedia.com
In Summary
- Mr Kambi removed Central Organisation of Trade Unions (Cotu) secretary- general Francis Atwoli and Federation of Kenya Employers (FKE) executive director Jacqueline Mugo from the NSSF board on July 18 on grounds that they had served more than two terms.
- President Uhuru Kenyatta on September 14 signed into law amendments made by parliament in late August blocking the fund’s board from meeting without the workers’ and employers’ representatives......................................................................................
Labour secretary Kazungu Kambi is on the spot for
defying a court order to reinstate two labour union and employer
representatives to the National Social Security Fund (NSSF) board of
trustees.
Mr Kambi removed Central Organisation of Trade Unions (Cotu)
secretary- general Francis Atwoli and Federation of Kenya Employers
(FKE) executive director Jacqueline Mugo from the NSSF board on July 18
on grounds that they had served more than two terms.
The Industrial Court suspended Mr Kambi’s gazette
notice on July 21, reinstating the two. Ms Mugo said the Labour minister
has disregarded the court order to date, with the NSSF board holding
meetings without sending invitations to FKE and Cotu.
“The argument used is that the Cabinet secretary
has not re-gazetted the FKE and Cotu representatives to the board after
the court nullified this gazette notice,” she said at a press conference
in Waajiri House in Nairobi last Friday.
ALSO READ: Employers to sue in NSSF board dispute
President Uhuru Kenyatta on September 14 signed
into law amendments made by parliament in late August blocking the
fund’s board from meeting without the workers’ and employers’
representatives.
The amendments provide that the NSSF will not have a
quorum in the absence of trustees representing the two parties. The
workers are represented in the NSSF board by a nominee of the Cotu and
the employers by the executive director of their lobby —FKE.
According to the Parliament, the amendments will
put tighter controls and ensure prudent management of the large amount
of money NSSF is expected to handle with the roll out of the newly
proposed workers’ contributions.
Ms Mugo said the ministry and NSSF have refused to
invite them to board meetings, “which creates an environment that
beckons dictatorship”. “If unchecked, the alarming state of anarchy that
is slowly being introduced into the labour sector will throw it into
complete disarray,” she said.
The employers said Mr Kambi was setting a bad
precedent for labour relations by undermining the roles of Cotu and FKE.
“It also goes against the Industrial Relations Charter entered jointly
by the government, employers and workers which recognises the right to
freedom of association,” said FKE board member Gilda Odera.
The NSSF projects it will collect Sh118 billion
annually from contributions, with the estimated value of total assets
under its control expected to stand at Sh742 billion once it becomes a
pension scheme.
The implementation of the NSSF Act 2013 is expected
to rope in all workers in the formal and informal sectors, spurring
growth. However, roll-out has been delayed due to court injunctions by
individual unions and employers
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