A city advocate has filed a case in court seeking to stop the new National Social Security Fund (NSSF) deduction plan from taking effect.
The new NSSF contribution is to take effect from February 2024.
John Maina Ndegwa says Kenyans are already burdened by the high cost of living and any further deductions on their pay slip will continue to suffer immeasurably.
The advocate explains that the economic outcome of the new rates implementation will negatively impact the country's economy because more employers will have to declare their workers redundant due to the increased running costs of maintaining their employees.
“The said proposed deduction from the employees are coming at a time when Kenyans are struggling with the high cost of living with a shrinking pay slip because of a weakened economy," reads the petition.
Ndegwa wants the court to certify the matter as urgent and issue a temporary order restraining the board of NSSF from implementing the new contribution rates in 2024.
The new rates indicate that the lower earnings limit or the amount that is considered the lowest pensionable salary has been raised to Sh7,000 shillings up from the current Sh6,000.
This category of employees will now contribute Sh420 from the current Sh360.
In addition, the Upper Earnings Limit has now been hiked to Sh29,000 from the current Sh18,000, meaning most workers will contribute Sh1,740 up from Sh1,080.
Each contribution will be matched by the employer, as has been the case.