Sharp Daily
No Result
View All Result
Friday, September 18, 2026
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Why the NSSF Act was good for the pensions industry

Joshua Otieno by Joshua Otieno
August 9, 2024
in News
Reading Time: 2 mins read

The enactment of the NSSF Act of 2013 marked a significant milestone for the pensions industry in Kenya. At a time when the need for financial security in retirement was becoming increasingly apparent, the Act provided a much-needed overhaul of the existing system, which had long been criticized for its inadequacies.

Prior to the 2013 reforms, the National Social Security Fund (NSSF) was primarily a provident fund, offering lump sum payments upon retirement, disability, or death. While this system provided some level of support, it fell short of ensuring long-term financial security for retirees. The NSSF Act of 2013 transformed the fund into a social insurance pension scheme, with the promise of offering regular income to retirees for the rest of their lives. This shift was not only timely but necessary, as it aligned the NSSF with international best practices in pension provision.

One of the most significant changes brought about by the Act was the introduction of mandatory contributions for both employees and employers. This move was crucial in creating a sustainable source of funding for the pension scheme, ensuring that retirees would receive benefits that were both predictable and adequate. By mandating contributions based on a percentage of an employee’s earnings, the Act also introduced a level of equity into the system. Higher earners would contribute more and, in turn, receive benefits that were proportionate to their contributions. This progressive approach helped to address the disparities that existed under the previous system, where contributions were flat-rate and did not reflect the varying levels of income among workers.

The Act also introduced a two-tier structure, with a universal pension for all workers and the option for higher earners to contribute more for increased benefits. This encouraged a culture of savings and financial responsibility.

RELATEDPOSTS

Rising costs push hundreds of firms to exit NSSF scheme

March 17, 2026

NSSF early pension access proposal

February 13, 2026

In addition, the Act broadened the scope of the NSSF, extending coverage to the informal sector, which represents a significant portion of Kenya’s workforce. Prior to the Act, workers in the informal sector were largely excluded from formal pension arrangements, leaving them vulnerable in old age. By making provisions for this group, the NSSF Act of 2013 took an important step towards achieving universal pension coverage, ensuring that all Kenyans, regardless of their employment status, could look forward to a secure retirement.

Previous Post

Carry Trades unravel as Japan’s interest rate shift rattles markets

Next Post

Uber Kenya’s electric motorbike rides surge 94% in Nairobi amid green mobility push

Joshua Otieno

Joshua Otieno

Related Posts

News

Safaricom Divestiture Reversed: High Court Nullifies Kshs 204.3 bn Vodacom Stake Sale

September 17, 2026
Analysis

Family bank joins NSE: What it means for investors

September 17, 2026
News

Student Housing as an Investment Frontier

September 17, 2026
News

Kenya’s collective investment market moves toward a new phase

September 16, 2026
News

Asahi Group set to take control of EABL after Kenya’s competition watchdog approves Sh298 Billion Diageo deal

September 14, 2026
News

Onchain Credit Transformation Drives Modern Digital Payments

September 14, 2026

LATEST STORIES

Safaricom Divestiture Reversed: High Court Nullifies Kshs 204.3 bn Vodacom Stake Sale

September 17, 2026

Family bank joins NSE: What it means for investors

September 17, 2026

Apple TV now officially available in Kenya via iCloud+

September 17, 2026

Student Housing as an Investment Frontier

September 17, 2026

Apple Expands Into Kenya With Apple TV and Arcade Launch

September 17, 2026
KRA

KRA hands cargo tracking to private vendors in major customs overhaul

September 16, 2026

Kenya’s collective investment market moves toward a new phase

September 16, 2026

What investors should look out for before investing in Kenya

September 15, 2026
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024