BY IIRENE ONYANGO.
A Nairobi resident has moved to court seeking temporary suspension of the new National Social Security Fund (NSSF) rates, which will be implemented from next Month.
John Maina Ndegwa said in the petition filed at the High Court that the enhanced rates are unconstitutional as they offend Article 47 of the constitution and section 4 of the Fair Administrative Action Act.
This is because the notices published by the NSSF board are inadequate and unreasonable as they did not give employers and employees time to reorganize themselves.
Ndegwa wants the Regulations of Wages amendment order 2022, be declared null and void.
He argues that the Cabinet Secretary for Labour and Social Services does not have the power to make such orders given that the four year requirements in the third schedule of NSSF Act, 2013 had not elapsed yet.
“There is a looming doubt as to whether or not the graduated national average earnings are to be based on the 2013 rates or on the current rates,” he stated.
He is seeking orders from the court to compel the NSSF board to suspend the implementation of the contribution rates, 2024 of the 3rd schedule of the NSSF act, 2013.
According to Ndegwa, the NSSF deductions from employees comes at a time when Kenyans are burdened by high cost of living with a shrinking pay slip due to the depression of the economy of Kenya.
“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 further argued that the deductions will impact Kenya’s economy negatively because employers will declare their workers redundant and or close their production or service ventures due to the increased running costs of maintaining their employees.
On January 12, 2024 the board of NSSF published a notice in the local dailies requiring all employers to start deducting the new contribution rate of Sh 1,750 per month, for the high income earners.
In an affidavit provided to the court by Ndegwa, he stated that the 3rd schedule of the NSSF act 2013 spells clearly amount chargeable within the first four years after commencement of the act, January 10, 2014.
The court will give directions on the matter on January 23.
