“We have been engaging both FKE and Cotu so as to unlock the Act within the next two months. There were a few issues, but whatever concerns were there have been sorted. It is just a matter of sitting down and operationalising the Act,” he said in Nairobi. “If that does not happen, the fund is going to shrink over time. We don’t want to find ourselves in a situation where we have to liquidate assets to pay retirees.”
“We have been engaging both FKE and Cotu so as to unlock the Act within the next two months. There were a few issues, but whatever concerns were there have been sorted. It is just a matter of sitting down and operationalising the Act,” he said in Nairobi.“If that does not happen, the fund is going to shrink over time. We don’t want to find ourselves in a situation where we have to liquidate assets to pay retirees.”
NSSF Board of Trustees’ chairman Julius Karangi Monday said the discussions with the Central Organisation of Trade Unions (Cotu) and the Federation of Kenya Employers (FKE) will see it raise the deductions “in the course of this year.”
If implemented, the stalled NSSF Act 2013 will see workers compelled to save more for retirement while employers will face increased compliance costs.
This is amid a history of board wrangles and misappropriation of workers’ contributions at the State agency that was founded in 1965.