NSSF Issues Fresh Directives to Salaried Kenyans and Employers After Latest Court Ruling

The National Social Security Fund (NSSF) has directed employers and salaried Kenyans to continue making contributions under the enhanced rates set out in the NSSF Act, 2013, despite a recent court ruling delivered on May 30, 2026.

In a statement issued on Friday, June 5, 2026, NSSF said the Court of Appeal judgment delivered on February 3, 2023, remains the valid ruling. This means the NSSF Act is still in force and the current contribution rates continue to apply.

The Fund warned employers, employees and stakeholders against claims that NSSF contributions have reverted to the old rate of Ksh 200 from employees and a matching Ksh 200 from employers.

“We advise all employers, employees and stakeholders to disregard the misleading opinions alluding to reverting contributions to KSh200 and to remain steadfast as we allow the Court of Appeal to give directions on the issues that are still pending determination,” said NSSF Managing Trustee and CEO David Koross.

NSSF Says Enhanced Rates Still Apply

NSSF said the issues currently pending before the Court of Appeal do not affect the contribution rates paid by employers and employees.

According to the Fund, contributions should continue under the fourth-year implementation cycle provided for in the NSSF Act, 2013.

Also Read: NSSF Sends Notice to Employers as New Contribution Rates Take Effect

The Fund also warned employers against failing to comply with the law, saying this could deny workers benefits they have already earned and attract penalties.

“All employers and workers are reminded to comply to avoid denying their employees a benefit that has already crystallised and unwarranted penalties,” the statement said.

NSSF noted that the NSSF Act, 2013, was introduced to increase retirement savings and help reduce poverty among older Kenyans.

According to the Fund, only 20% of workers in Kenya currently have a retirement savings plan. It added that low savings levels have left many elderly Kenyans struggling to meet their daily needs after retirement.

Fund Defends Retirement Savings Reforms

NSSF said the previous contribution system, where workers contributed Ksh 200 and employers matched the amount, resulted in low retirement savings.

Also Read: NSSF Announces Highest Ever Return for Members as Contributions Hit Ksh 84 Billion

The Fund noted that under the current system, employers continue to match employee contributions, helping workers save more for retirement.

As of March 30, 2026, NSSF said its assets had grown to about Ksh 715 billion, which it attributed to increased participation by employers and workers.

The Fund also highlighted the returns paid to members, saying it declared an 11% net return in the 2023/2024 financial year and a 17% net return in the 2024/2025 financial year.

NSSF said the growth demonstrates confidence in the retirement savings scheme and will help improve retirement benefits for Kenyan workers.

Court Rejects  National Social Security Fund Application

The clarification comes after the Court of Appeal dismissed an application by NSSF seeking to suspend a judgment of the Employment and Labour Relations Court (ELRC) declaring the NSSF Act, 2013, unconstitutional.

The appellate court said that although NSSF had raised arguable legal issues, including whether the law was wrongly classified as a social assistance programme instead of a contribution-based pension scheme, it had not shown that its appeal would be rendered useless if the stay orders were not granted.

The judges also faulted NSSF for claiming there would be major financial and operational disruptions without providing enough evidence to support those claims.

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NSSF building in Nairobi. PHOTO/NSSF