Court Puts Breaks On Ruto Plan To Raise NSSF Deductions

President Ruto's plan to increase NSSF contribution might have to wait longer after the top most court today granted a petition seeking to stop its implementation.

President Ruto’s plan to increase NSSF contribution might have to wait longer after the topmost court today granted a petition seeking to stop its implementation.

The Supreme Court has granted an urgent review of an appeal seeking to halt President William Ruto’s administration’s plan to increase NSSF contributions.

The Supreme Court Registrar, Bernard Kasavuli, today gave the NSSF Board of Trustees, the Retirement Benefits Authority, the Federation of Kenya Employees, the Attorney General, and other parties sued in the case by 6,000 pensioners, seven days to file replies to the lawsuit.

“Respondents having been served yesterday are granted seven days to file and serve their responses and submissions to the appeal. Mention on tenth day – March 6, 2023 at 9 am to confirm compliance,” Kasavuli directed.

The directives came after the County Pensioners Association petitioned the country’s highest court on Friday last week, seeking orders halting the execution of the Court of Appeal’s ruling, which opened the way for the government’s rise in NSSF contributions.

The petitioners, represented by lawyer Muthomi Thankolu, ask the Supreme Court to overturn the appeal court’s ruling of February 3, 2023, and declare forced contributions to the NSSF unlawful.

They also want the Supreme Court to impose orders prohibiting the NSSF Board of Trustees, the Retirement Benefits Authority, and the Federation of Kenya Employees (FKE) from raising workers’ monthly deductions, which are slated to begin on March 9, 2023.

“The public would suffer substantial and irreparable loss (including but not limited to a run on pension systems superior to the NSSF) unless this Honourable Court stays the execution of the impugned Act pending the hearing and conclusion of the Applicant’s appeal,” Lawyer Muthomi contends.

They are challenging the verdict on the grounds that the Court of Appeal misread and misapplied certain parts of the Constitution when it authorized a tenfold increase in workers’ monthly payments to Kes 2,068.