The National Social Security Fund (NSSF) has instructed employers to maintain deduction and remittance of contributions at the current elevated rates following a Court of Appeal decision that refused to halt a ruling deeming the NSSF Act, 2013, unconstitutional.
In a Friday, June 5 statement, the Fund indicated that current court proceedings have no impact on contribution rates being remitted by employers and employees.
The Fund advised the public to ignore assertions that contributions should return to the prior Ksh200 employee and Ksh200 employer deductions.
“To clarify for our members and stakeholders, the NSSF Act remains in effect based on the Court of Appeal’s judgment issued on February 3, 2023,” the Fund explained.
“The matters awaiting court resolution in no way affect employer and employee contribution rates, which continue to follow the year four cycle as specified in the Third Schedule of the NSSF Act,” it stated.
This directive follows a week after salaried Kenyans gained temporary respite when seeking to suspend a ruling that invalidated the NSSF Act, 2013.
In the May 29, 2026 court judgment, the appellate court determined that NSSF had not demonstrated that denying a stay order would inflict irreparable damage on the pension sector.
The judges observed that although the Fund had presented debatable legal points, this alone was inadequate to justify halting the lower court’s decision.
NSSF had contended that invalidating the 2013 law might disrupt pension contributions, impact the Haba na Haba savings scheme, generate uncertainty for members, and interfere with the management of billions of shillings in pension funds.
Nevertheless, the court ruled that the Fund had not supplied sufficient evidence to substantiate those claims, with the judges additionally noting that NSSF did not present audited accounts and actuarial reports demonstrating potential financial or operational disruption.
The court also noted that for years there was no evidence of governance challenges or systemic collapse.
Despite this setback, NSSF asserted that the 2013 Act remains in effect and justified the enhanced contribution rates as essential to increase retirement savings and reduce old-age poverty among Kenyans.
The Fund reported that its assets had increased to approximately Ksh715 billion by March 30, 2026, and affirmed its commitment to protecting members’ contributions while awaiting further court instructions.