Cotu vows to pursue NSSF rates case in court

Sophie Njoka @PeopleDailyKe

Central Organisation of Trade Unions (Cotu) insists it will not withdraw a case, which stopped the implementation of new National Security Social Fund (NSSF) rates which came into effect in 2014.

The workers’ body maintained yesterday that implementation of the NSSF Act 2013, will have serious effects on workers and members of the social security scheme. The new NSSF Act came into effect on June 1, 2014 and provides for a six per cent rise of the NSSF contributions from Sh200.

Deputy secretary general Benson Okwaro refuted claims that Cotu had reached an agreement with the government to withdraw the matter from court to pave way for its implementation.

The contribution will be 12 per cent of the pensionable earnings, with employees remitting six per cent and another six per cent from the employer. The maximum contributions for employees earning above Sh18, 000 will be Sh2,160, which will be split into two to be paid by the employer and employee with each paying Sh1,080.

The lower earnings limit will be Sh6,000. Cotu claimed that some sections of the Act are unconstitutional as they are inconsistent with Article (10) and (d) of the Constitution because they give the Labour Cabinet secretary unlimited discretionary powers in the management of the Fund.

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