Kenyans Face More Salary Cuts For Unemployment Insurance Fund
The Unemployment Insurance Bill 2022 was introduced on Thursday to the parliamentary budget office for consideration, which will result in new monthly deductions for salaried Kenyans.
The measure sponsored by Ikolomani Member of Parliament Bernard Shinali will require monthly contributions from employers and employees.
Shinali indicates in the measure that the Fund was inspired by South Africa, where both employer and employee contribute 1%.
“The objective of the proposal is to provide for the payment of unemployment benefits to employees who become unemployed or their beneficiaries by proposing to establish the Unemployment Insurance Fund to which both the employer and employee will contribute,” the bill reads in part.
Shinali indicates that this will aid unemployed workers in navigating difficult economic circumstances.
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In addition to salary deductions, the fund will be replenished through national government appropriations, county government funds, and donations and grants from development partners.
The Bill stipulates that the funds will be entrusted to the Unemployment Insurance Authority, which will be constituted by an act of Congress.
The Authority will be governed by the norms and statutes of a corporation, with a board of nine members and a chairperson.
“The functions of the Authority will include; administering the Fund, advising the Cabinet Secretary on unemployment insurance policies and legislation, advising both levels of government on policy matters on unemployment and unemployment insurance while also facilitating the implementation of such policies relating to unemployment insurance,” the bill reads in part.
If the law sponsored by Shinali is passed by the legislature, the Treasury Cabinet Secretary will have the authority to exempt certain categories of employees from the mandatory salary deduction.
This decision will be made based on the advice of the Salaries and Remuneration Commission (SRC), which determines salaries for state officers and government employees.
Those between the ages of 15 and 64 who have been unsuccessfully seeking employment for four consecutive weeks will be eligible to receive benefits from the fund.
The destitute person should not be incapacitated to the point where he cannot work if a job opportunity arises.
Kenyans Face More Salary Cuts For Unemployment Insurance Fund
