Government responds to reports of increasing NSSF deductions
2 min read
The National Social Security Fund (NSSF) dismisses reports on increasing monthly deductions from Ksh1,080 to Ksh2,160
The National Social Security Fund (NSSF) dismisses reports on increasing monthly deductions from Ksh1,080 to Ksh2,160.
This is in response to reports that said the government would begin implementing the new deductions in January 2024, specifically targeting employees making more than Ksh36,000.
Additionally, the reports alleged that the monthly contributions would increase annually 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.
NSSF, however, clarified the issue, assuring Kenyans that no communication has been made about the new rates.
“Please be guided that this is misleading. NSSF has not communicated any deduction progression based on the new rates,” NSSF stated.
“We shall provide official communication regarding NSSF reductions. Employers and members shall be guided accordingly when the progression period falls due.”
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This comes as President William Ruto’s administration has been eyeing to create a culture of savings to create long-term investment and subsequently boost the country’s growth.
Through NSSF contributions, the government is eyeing to raise over a trillion from the NSSF by 2027.
Currently, NSSF collects approximately Ksh4 billion monthly from the registered members. This translates to an annual collection of Ksh48 billion.
Previously, the Fund would collect an average of Ksh14 billion yearly, indicating a significant rise in revenue collection.
President Ruto’s administration is also seeking to grow the number of registered members from the current 2.9 million to over 18.3 million Kenyans working in both the formal and informal sectors.
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