William Ruto Hopes To Raise KSh 400b In 5 Years Through New NSSF Contribution Model

• President William Ruto revealed that the new NSSF contribution model had seen monthly contributions rise by four and a half times
• The court sustained the law that proposed an increase in NSSF contributions from KSh 400 to KSh 2,160 per month
• Workers earning below KSh 18,000 were expected to contribute KSh 720 while those earning above will part with a KSh 1,440 monthly contribution

TUKO.co.ke journalist Japhet Ruto brings over eight years of experience in financial, business, and technology reporting, offering deep insights into Kenyan and global economic trends.

President William Ruto has reiterated his confidence in the new National Social Security Fund (NSSF) contribution model.

While addressing Kenyans during the 60th Jamhuri Day celebrations at Uhuru Gardens on Tuesday, December 12, Ruto revealed that the new NSSF contribution model had seen monthly contributions rise by four and a half times.

The president said the government targets raising KSh 400 billion within five years.

"The new NSSF contribution model has enhanced monthly contributions by four and a half times. The fund will therefore raise an additional KSh 400 billion in the next five years, tripling the value from KSh 320 billion to over KSh 1 trillion by 2027," Ruto disclosed.

How much were Kenyans contributing?

Kenyans have been contributing to the NSSF a minimum of KSh 200 per month for years.

The pension fund was aimed at offering social security for the elderly during their retirement since it was enacted in the NSSF Act, Cap 258 of the laws of Kenya of 1965.

NSSF act was last reviewed in 2001, increasing the monthly contribution from KSh 160 to KSh 200.

What will Kenyans contribute under the new act?

The second amendment came in 2013, giving rise to the NSSF Act No. 45 of 2013, which the Court of Appeal upheld after the Employment Court termed it unconstitutional.

On September 19, 2022, a three-judge court bench led by Justices Mathews Nduma, Hellen Wasilwa, and Monica Mbaru of the Employment and Labour Relations Court declared the act invalid.

NSSF filed an appeal following the ruling, challenging the jurisdiction of the bench sitting as an Employment and Labour Relations Court in declaring the NSSF Act 2013 unconstitutional.

The court sustained the law that proposed an increase in NSSF contributions from KSh 400 to KSh 2,160 per month.

Workers earning below KSh 18,000 are expected to contribute KSh 720 while those earning above will part with a KSh 1,440 monthly contribution.