Employers Issue New Directive on NSSF Rates

The Federation of Kenya Employers (FKE) has advised employers to continue deducting and remitting the new National Social Security Fund (NSSF) contribution rates, pending the final determination by the Court of Appeal.

In a statement dated June 12, FKE warned against reverting to the old KES 200 monthly contribution cap, saying such a move would create further operational challenges for employers amid ongoing legal uncertainty.

“FKE advises members that since the matter has not been conclusively determined in the Court of Appeal, it would be prudent for them to continue deducting and remitting the new rates prescribed by the NSSF Act, 2013,” read part of the statement.

The employer lobby group noted that the recent Court of Appeal ruling on the NSSF has led to confusion in the labour sector, with multiple conflicting court orders, compliance timelines, and public interpretations over the past 12 years.

FKE Calls for Stability in NSSF Contributions Pending Court Decision

However, FKE argued that the latest ruling delivered on May 29, 2026, which dealt with a stay of execution of the Employment and Labour Relations Court (ELRC) judgment, has raised questions on payroll compliance and contribution rates.

The organization said that since the matter remains unresolved in the Nairobi Court of Appeal between the NSSF Board of Trustees and KTGA and  14 Others, it leaves employers uncertain on whether to apply the new or old contribution structure.

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According to FKE, employers are currently stuck between two competing systems:

• NSSF’s demand for 6% contributions under the Tier I and II system based on pensionable earnings
• The previous capped system of KES 200 per contributor per month

The organization said this duality has made payroll processing and compliance increasingly difficult.

Employers Advised to Keep Records of Employees

FKF further recommended that employers maintain proper records and documentation to show that deductions are being made under caution and in compliance with ongoing legal processes.

“It would also be advisable to keep records and correspondence showing that the Employer is acting under caution pending final determination by the Court of Appeal.”

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The employers’ body warned that reverting to the pre-2013 contribution structure at this stage would create more problems for employers and disrupt payroll systems already affected by legal uncertainty.

In addition, FKE stressed that consistency in deductions is necessary to avoid compliance risks during the ongoing court process.

The organization has urged the Court of Appeal to expedite the determination of the case to bring clarity and stability to the labour sector.

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FKE Warns Against Reverting to Old NSSF Limit. Photo/ FILE.