Nairobi, Kenya – The Central Organization of Trade Unions (COTU) has sharply criticized the Federation of Kenyan Employers (FKE), warning the body to stop “meddling” in matters relating to workers’ social security.
In a press statement issued on Tuesday, COTU Secretary General Francis Atwoli accused the employers’ federation of spreading misinformation and attempting to incite workers against the newly implemented National Social Security Fund (NSSF) contribution rates.
The Row Over NSSF Contributions
The dispute stems from FKE’s recent warning that the rollout of the fourth phase of the NSSF Act, 2013 has shrunk workers’ disposable income. Employers argue that the increased deductions will further burden employees already grappling with a high cost of living.
Atwoli dismissed these claims as “disingenuous,” insisting that FKE has no mandate to speak on behalf of workers regarding their retirement savings.
“The FKE should stay in its lane and focus on employer obligations. Issues of wages, benefits, and the long-term social protection of employees fall squarely under the mandate of trade unions,” Atwoli stated.
He further alleged that employers are simply trying to avoid their statutory obligation to match the increased contributions.
Year 4 of the NSSF Act
The implementation of “Year 4” of the NSSF Act has significantly raised the ceiling for pensionable earnings:
- Lower Earnings Limit (Tier I): Increased to Ksh.9,000 (up from Ksh.8,000).
- Upper Earnings Limit (Tier II): Raised to Ksh.108,000 (up from Ksh.72,000).
While employers argue this raises the cost of doing business and reduces net pay, COTU maintains that the move is essential to secure a dignified retirement for Kenyan workers and move away from the “pittance” offered by the old flat-rate system.
Deepening Rift in Tripartite Partnership
COTU’s statement reflects a growing rift within the tripartite partnership comprising the government, employers, and unions. Atwoli urged the government to ignore what he termed “scare tactics” from the private sector and ensure full compliance with the law.
“Social security is a fundamental human right that should not be subject to business-centric propaganda,” he said.
Conclusion
The clash between COTU and FKE highlights the tension between employer concerns over rising costs and union demands for stronger worker protections. As the new NSSF contribution rates take effect, the debate underscores the broader challenge of balancing economic realities with the need for sustainable social security in Kenya.
