The National Social Security Fund acting managing trustee and CEO David Mwangangi has explained the government’s move to increase NSSF rates.

Speaking on Friday, Mwangangi said this is meant to improve the saving culture of the country.

“We want to increase savings in the country. Once we increase our savings we have more money within our country for development,” he said.

Mwangangi said Kenyans will be able to increase their benefits once they retire.

“Many of the contributions have been little, Kenyans don’t have a pension scheme and when they retire they get poverty in old age because they don’t have the energy to work and no one to support them,” he said.

Mwangangi said that once Kenyans can increase their savings, there will be more benefits.

He said that the goal is for Kenyans to retire with dignity and support themselves.

His sentiments come after the Court of Appeal ruled that the NSSF Act of 2013, which sought to increase monthly contributions from Sh200 to Sh2,000, is legal.

After the ruling, Kenyans are to contribute Sh2,000 to NSSF from their salaries up from the normal Sh200.

In September 2022, the Labour and Employment Relations Court declared the bid unconstitutional, null and void, saying the NSSF Act, 2013, was in breach of the Constitution as there was no public participation ahead of its enactment.

President William Ruto publicly declared that the amount should be increased, to enable Kenyan employees to save up a reasonable amount.

“Majority of people on the roll of NSSF are paying Sh200, it is ridiculous We just got a ruling from the court a week ago that it is wrong for us to increase it from Sh200, I don’t know know what we are doing. Do we live in the same country?” Ruto said then.

Ruto said that he had agreed with NSSF to talk to the court and reconsider the ruling.

The Star

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