NSSF: Clarifies Rate Hike Buzz to Ksh2,160
The NSSF has contested claims suggesting that Kenyan employers’ monthly deductions would double from Ksh1,080 to Ksh2,160.
The reports claimed that the government planned to implement fresh deductions beginning in January 2024, specifically aimed at employees earning a monthly salary exceeding Ksh36,000.
Additionally, according to the reports, it was claimed that the monthly payments would rise each year until the fifth year.
“If you earn more than Ksh36,000 per month. Gross, your NSSF deduction is about to go up from Ksh1,080 per month to Ksh2,160 in Year 2 which begins this month. The deductions will increase each year till year 5,” the reports which have since been flagged as false indicated.
However, the NSSF clarified the matter, reassuring Kenyans that there has been no communication regarding the updated rates.
“Please be guided that this is misleading. NSSF has not communicated any deduction progression based on the new rates,” NSSF stated.
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“We shall provide official communication regarding NSSF reductions. Employers and members shall be guided accordingly when the progression period falls due.”
President William Ruto’s government has been aiming to instill a habit of saving to encourage long-term investments, ultimately aiming to enhance the country’s economic growth.
The government aims to generate more than a trillion through NSSF contributions by 2027.
At present, the NSSF gathers around Ksh4 billion per month from its enrolled members, resulting in a yearly total of Ksh48 billion in collections.
In the past, the Fund used to gather around an annual average of Ksh14 billion, demonstrating a notable increase in the amount of revenue collected.
President Ruto’s government aims to increase the count of enrolled individuals from the existing 2.9 million to more than 18.3 million Kenyan citizens engaged in both formal and informal occupations.
NSSF: Clarifies Rate Hike Buzz to Ksh2,160
