What Kenyans Should Know About The National Social Security Fund (NSSF)
The NSSF contributions were last reviewed in 2001 when the rate was increased to Kshs. 200 from Kshs.160. The NSSF Act, of 2013 increased salaried employees’ monthly deductions from Sh200 to Sh600 for the lowest earner and from Sh320 to Sh1,080 for top earners under a graduated scale. The upper limits on contributions are to rise every year.
The increase came as a result of the Court of Appeal’s decision reinstating the NSSF Act 2013, ending a seven-year impasse. This has since caused a public uproar against the move by the government institution, citing hard economic times. Even so, officials at the National Social Security Fund (NSSF) have emphasized that the rise is overdue and justified since the last review was done 21 years ago.
Experts have however come out to say that the increase is in order and it is for the good of Kenyans who need a decent security fund in their golden days. In the same breath, the Financial service provider company, Octagon Africa has partnered with the government to sensitize citizens on the same.
The company has begun a countrywide engagement with stakeholders in furtherance of its financial literacy initiative. Octagon Africa has planned a series of sensitization forums targeting members of the public, corporate organizations, and their customers.
These sessions aim to create awareness and deepen the public’s understanding of contributory pension schemes, the importance of savings for retirement, internalize the NSSF Act, 2013, and re-emphasize the company’s position as the leading pensions management provider in Kenya, Uganda, and Zambia.
While welcoming the Court of Appeal ruling and the subsequent developments in the pensions industry, Octagon Africa Group CEO Fred Waswa noted that the ruling opens the door for the full implementation of the NSSF Act,2013 paving the way for better retirement packages for both employed and self-employed Kenyans.
“Over the years, the cost of living has continued to rise, and it is crucial that the industry establishes a framework that ensures that retirement savings keep pace with these changes. The implementation of the NSSF Act, 2013, although it increases pension deductions, it ensures that Kenyans have the financial security they need in retirement, allowing them to enjoy their golden years with peace of mind,” Mr. Waswa said.
Octagon has outlined a series of stakeholder engagement activities including virtual seminars, public lectures, social media engagements, capacity-building programs, faith-based organization sensitization workshops, regional conferences in major towns, and County Government engagement forums. Octagon Africa General Manager- Marketing, Products & Business Development Davis Ongiro said that these engagements to be held with several stakeholders are organized to facilitate the dissemination of adequate information to the general public.
“We are committed to being a responsible pensions management provider. By deepening the public’s understanding of these recent developments in the pensions industry, we hope to support the country and provide our customers with the right information they need to secure their financial futures. We will engage them in every platform to ensure the right message on pensions is out,” Mr. Ongiro said.