COTU Supports NSSF Deductions Despite Court Ruling Confusion

The Central Organisation of Trade Unions (COTU) has advocated for the persistent deduction and remittance of National Social Security Fund (NSSF) contributions at the enhanced rates, maintaining that workers and employers should adhere to current requirements amidst ongoing legal uncertainties. Through a statement released on Saturday, June 6, COTU affirmed that Kenyan workers will persist with contributions according to the framework outlined in the NSSF Act, 2013, which the organization asserts remains legally sound and binding. COTU indicated that its stance is founded upon the Court of Appeal ruling issued on February 3, 2023, which the organization contends continues to serve as the legal foundation for the existing contribution arrangement. The labor coalition observed that despite subsequent court actions related to the legislation, including requests for stay orders, these measures do not, in their assessment, nullify or halt the current contribution levels. “As the organization representing Kenyan workers, we want to inform the public that Kenyan workers will continue contributing under the enhanced framework established by the NSSF Act, 2013, which we consider valid and enforceable based on the judgment issued by the Court of Appeal on 3rd February, 2023,” COTU stated in the notice bearing the signature of Secretary General Francis Atwoli. The union’s declaration arrives amid revived public discussion following a recent Court of Appeal ruling on May 29, 2026, that rejected an attempt to halt a prior decision which had found certain provisions of the NSSF Act, 2013, to be unconstitutional. The court determined that NSSF had not presented adequate justification, pointing out that assertions about potential disruption to the pension system lacked sufficient evidence to support them. In response to the decision, NSSF released a directive instructing employers to persist with deducting and remitting contributions at the present elevated rates. NSSF asserted that the legal proceedings underway do not indicate a return to the prior, lower contribution deductions. COTU stated that employers must continue observing the law as currently implemented, cautioning that failure to remit contributions could endanger workers’ retirement funds and compromise pension security. Simultaneously, COTU urged for more transparent judicial and institutional communication on this issue, noting that divergent interpretations of court decisions threaten to create bewilderment among workers, employers, and pension stakeholders. The controversy surrounding the NSSF Act, 2013, continues to draw interest across labor and legal circles, with some legal professionals strongly criticizing NSSF and the Attorney General for not offering a definitive interpretation. “NSSF, in its communication, has provided an inadequate interpretation. The Supreme Court determined that the Court of Appeal made an error by lacking authority to address the matter and returned it for proper consideration. Consequently, NSSF cannot collect deductions under the 2013 Act but only under the repealed Act. It’s straightforward,” stated Ndong Evance, an advocate of the High Court.