Nairobi, Kenya – The Federation of Kenya Employers (FKE) has strongly rebuked the Central Organization of Trade Unions (COTU), warning the union against attempts to silence employers from commenting on matters relating to workers’ social security.
The dispute escalated on February 3, 2026, when COTU Secretary General Francis Atwoli accused FKE of spreading misinformation and inciting workers against the newly implemented National Social Security Fund (NSSF) contribution rates.
FKE’s Position
In a statement issued by FKE Chief Executive Officer Jacqueline Mugo, the employers’ body reaffirmed its support for the enhanced contribution structure, dismissing Atwoli’s claims as baseless.
FKE emphasized that the new rates were anchored in earlier contribution plans and actuarial assessments when the reforms were first rolled out. The federation argued that building pension savings is essential to strengthening Kenya’s savings culture and protecting workers’ financial security after retirement.
“FKE therefore urges employers to disregard the baseless statements made by COTU (K) and to continue complying with the enhanced NSSF contribution rates as required by law as we have always done,” the statement read.
At the same time, FKE acknowledged that rising statutory deductions have squeezed workers’ net earnings. It urged the government, unions, and employers to engage in open and responsible dialogue aimed at balancing disposable incomes, business performance, and the sustainability of public revenues.
COTU’s Response
Atwoli, however, sharply criticized FKE, accusing the employers’ lobby of overstepping its mandate and misleading workers. He argued that retirement benefits and worker welfare fall squarely under the jurisdiction of trade unions, not employers.
“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.
Impact of the New NSSF Rates
The updated NSSF contributions took effect on February 1, 2026, raising both employee and employer contributions:
- The lower earnings threshold increased from Ksh.8,000 to Ksh.9,000.
- The upper limit rose from Ksh.72,000 to Ksh.108,000.
Employers have expressed concern about the impact on operating costs and employees’ take-home pay. Unions, on the other hand, argue that the adjustments are necessary to ensure more adequate retirement savings and to move away from the low benefits associated with the previous flat-rate model.
Conclusion
The clash between FKE and COTU underscores the tension between employers and unions over the implementation of Kenya’s pension reforms. While both sides agree on the importance of securing workers’ futures, they remain divided on how best to balance retirement savings with immediate economic realities.
