NSSF Directs Employers to Continue Deducting Enhanced Contributions Despite Court of Appeal Ruling

The National Social Security Fund (NSSF) has directed employers to continue deducting and remitting pension contributions at the current enhanced rates, despite a recent Court of Appeal ruling declining to suspend a judgment that had declared the NSSF Act, 2013 unconstitutional.

In a statement issued on Friday, June 5, the Fund said the ongoing court proceedings do not affect the current contribution rates being remitted by both employers and employees.

NSSF further urged members of the public to disregard claims that contributions should revert to the previous structure of Ksh200 for employees and Ksh200 for employers.

“This is to clarify to our members and stakeholders that the NSSF Act is still in force on account of the judgment of the Court of Appeal rendered on February 3, 2023,” the Fund said.

“The issues pending determination by the Court do not in any way affect contribution rates by employers and employees, which remain those of the year four cycle in accordance with the Third Schedule of the NSSF Act,” it added.

The directive comes days after the Court of Appeal dismissed an application by NSSF seeking to suspend the effect of a judgment that had invalidated key provisions of the 2013 Act.

In a ruling delivered on May 29, 2026, the appellate court held that NSSF had failed to demonstrate that declining to grant a stay order would cause irreparable harm to the pension sector.

The judges noted that while the Fund had raised arguable legal issues, this alone was insufficient to justify suspending the earlier decision.

NSSF had argued that the nullification of the 2013 law could disrupt pension contributions, affect the Haba na Haba savings scheme, create uncertainty for members, and interfere with the management of billions of shillings in pension funds.

However, the court found that the Fund did not provide sufficient evidence, including audited accounts and actuarial reports, to support claims of potential financial or operational disruption.

The judges further observed that NSSF contributions had previously been collected under the earlier legal framework for years without evidence of systemic collapse or governance failure.

Despite the ruling, NSSF maintained that the 2013 Act remains operational and defended the enhanced contribution rates, saying they are aimed at strengthening retirement savings and reducing old-age poverty among Kenyans.