Lawyer seeks to halt implementation of increased NSSF deduction
A lawyer has moved to the High Court seeking to stop the implementation of National Social Security Fund (NSSF) deductions set to commence next month.
John Maina Ndegwa terms the deductions as unconstitutional as they offend Article 47 of the constitution of Kenya and section 4 of the Fair Administrative Act as the said notices are inadequate and unreasonable in nature to enable employers and employees to reorganise themselves.
On January 12, 2024, the NSSF board issued a notice requiring all employers to start deducting the new contribution rate of Sh1,750 per month from their employees.
The argues that the proposed deduction comes at a time when Kenyans are experiencing tough economic times. “Kenyans are suffering from the high cost of living and implementation of the deductions will add more burden to Kenyans who are struggling and suffering from the hard economy,” said Ndegwa.
He observed that the planned deductions will have a negative impact on the country’s economy since most employees will be declared redundant by their employers closing shop.
In a sworn affidavit, the lawyer argues that the third schedule of the NSSF Act 2013 spells clearly the amount chargeable within the first four years after commencement of the Act on January 10, 2014.The court will give directions on the matter will be on January 23, 2024.
Lawyer seeks to halt implementation on increased NSSF deduction
