The Central Organization of Trade Unions (COTU) Kenya has backed the push by President William Ruto to have National Social Security Fund (NSSF) contributions increased.
In a statement released by the organization’s Secretary General Francis Atwoli, COTU maintained that its stand all along has been championing for the increment to guarantee workers’ welfare once they retire.
Read: NSSF Acquires Additional Ksh700 Million Stake In KCB
The Ksh. 200 deduction, which COTU terms as the lowest in East Africa, has been blamed by the NSSF for increased dependency rate among senior adults once they hit the retirement age.
“COTU would like to make it clear to all Kenyan workers and Kenyans in general that we fully support the increment in NSSF deductions from the current KSh. 200 to 6% rate captured in the NSSF Act,” Said Atwoli in a statement.
“Indeed, this increase has been long overdue, considering it is not just the lowest in the East Africa region but also has been COTU’s view that the current deductions are critically inadequate,”
Since his swearing-in, President Ruto has been pushing for the review of the contribution from the current flat rate of Ksh. 200 to an amount commensurate with what one earns.
Read: Blow To NSSF As Court Quashes Proposed Higher Deductions
The president’s rationale is that more savings would avail more money for borrowing even by the government, hence shunning external borrowing as well as promoting local lenders.
However, the push for the increase by NSSF was dealt a huge blow by the High Court last month after it annulled a 2013 NSSF act that sought to deduct 6% of a worker’s wage, with the employer forced to top up a similar amount.
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