Lawyer Maina Ndegwa Takes Ruto To Court Over Hiked NSSF Deductions
The government’s plan to generate additional revenue through The National Social Security Fund encountered a setback on Monday when Lawyer Ndegwa Maina filed a court petition to halt the proposed increased deductions scheduled for implementation in February 2024.
Ndegwa submitted a petition to the High Court, requesting the expedited certification of the case.
Ndegwa identified key figures in President William Ruto’s administration as respondents, including Labor Cabinet Secretary Florence Bore and Principal Secretary for Social Protection Joseph Mogosi Motari.
Others listed as respondents include; the NSSF Board and Attorney General Justin Muturi.
“I Maina Ndegwa do certify the application attached and filed herewith to be of uttermost urgency requiring to be placed before the Judge on a priority basis for the reason that the third respondent (NSSF Board) has placed notices in newspapers having wide circulations on January 12, compelling all employers to implement the Year 2 Contribution Rates 2024,” the petition read in part.
Ndegwa expressed in his petition that the contribution rates for the year 2024 in Year 2 were excessive and unjustifiable.
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He contended that it was inappropriate for the government to raise deductions when numerous Kenyans were grappling with the elevated cost of living.
Ndegwa additionally informed the High Court that salaried individuals in Kenya were already facing additional obligations through other mandatory deductions.
“Burdened Kenyans have minimal earning capacity and unless this honorable court intervenes, the employed cadre of Kenyans will continue to suffer immensely,” he told the Milimani-based court.
If the High Court rejects Ndegwa’s petition, Kenyans will face additional deductions ranging from Ksh420 to Ksh1,740.
This arises from the application of the 3rd Schedule within the NSSF Act Cap45 of 2013, which progressively increases the compulsory pension contributions made by employees, depending on their income thresholds.
Over the course of five years, contributions are set to rise, starting with an initial fixed rate of Ksh200 per employee and progressing to a tiered system where deductions will be six percent of an employee’s salary.
Lawyer Maina Ndegwa Takes Ruto To Court Over Hiked NSSF Deductions