Federation of Kenya Employers- N.S.S.F ACT Training
January, 2014

The Association attended a forum by FKE in Nairobi and Mombasa on the NSSF Act 2013. The bill was passed by Parliament on 4th December 2013 and received presidential assent on 24th December 2013. The effective date for the Act was indicated as 10th January 2014.

The key highlights of the Act are:-

  • Introduction of mandatory pension contributions
  • Contributions at level of 12% of earnings(6% ers, 6% ees)
  • Phased in over 5 years
  • Two tier contributions(Tier I and Tier II)
  • Partial opt out of Tier II contributions

Key issues that were raised by the employers were:

  • ICT Systems preparedness at NSSF
  • Lack of regulations on a number of issues like, contracting out, registration of employers and members, benefits under the act, confirmation on exempt persons, cross boarder membership and transfers.
  • Issue of gratuity –The regulations should consider the issue of gratuity paid by employers in relation to Tier II contributions as well as existing CBAs

FKE is expected to be included in the committee that will be set up to look at the regulations for implementation before the new implementation date which is 31st May 2014, and hopefully the concerns raised by the employers will be factored in.

More Information