The Central Organization of Trade Unions (COTU) castigated the Federation of Kenyan Employers (FKE), warning the body to stop “meddling” in matters regarding workers’ social security.
COTU Secretary General Francis Atwoli accused the employers’ federation of spreading misinformation and attempting to incite the workforce against the newly implemented National Social Security Fund (NSSF) contribution rates.
The row stems from a recent warning by the FKE, which raised concerns over the “shrunk” disposable income of Kenyan workers following the rollout of the fourth phase of the NSSF Act, 2013. The FKE suggested that the increased deductions would further burden employees already struggling with a high cost of living.
Atwoli, however, dismissed these claims as “disingenuous,” asserting that the FKE has no mandate to speak on behalf of workers regarding their retirement savings.
“The FKE should stay in its lane and focus on employer obligations. Issues of wages, benefits, and the long-term social protection of employees fall squarely under the mandate of trade unions,” the COTU boss stated. He further claimed that the employers’ body was merely trying to avoid its statutory obligation to match the increased contributions.
The implementation of “Year 4” of the NSSF Act has significantly raised the ceiling for pensionable earnings. As of February 1, 2026, the Lower Earnings Limit (Tier I) was expected to hit Sh9,000, up from Sh8,000 and the Upper Earnings Limit (Tier II) has jumped to Sh108,000, up from Sh72,000.
While employers argue this increases the cost of doing business and reduces net pay, COTU maintains that the move is a necessary step to secure a dignified retirement for Kenyans and move away from the “pittance” offered by the old flat-rate system.
COTU’s statement reflects a deepening rift within the tripartite partnership comprising the government, employers, and unions.
Atwoli urged the government to ignore “scare tactics” from the private sector and ensure full compliance with the law, noting that social security is a fundamental human right that should not be subject to “business-centric propaganda.”
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