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COTU boss Atwoli supports new NSSF plan initiated by president Ruto

Post by : Ann Njambuya

COTU secretary General Francis Atwoli. He has expressed his support for the new NSSF plan to increase monthly contributions.

President Ruto’s new NSSF plan to increase the monthly contribution has gained support from the COTU Boss Francis Atwoli. The Central Organisation of Trade Unions is a collective body of trade unions. The body is mainly instrumental in championing the universal rights of workers in a collective manner. All Trade unions in the country are expected to join the body.

Ruto is on record saying the need to have increased savings and social security contributions. Currently an employee is mandated to contribute Ksh 200. The employer is expected to match the same amount contributed by the employee. This contribution has however been outlawed by the high court. The contributions were mandatory but the mandatory requirement was quashed by the High Court.

The NSSF had published new rates that wanted to cap the monthly deductions at 6% with employer matching employee contribution. This requirement was quashed by the high court also  terming the clause as unconstitutional. According to Atwoli the current contribution to the social security fund is the lowest in the region. The COTU boss says that as an organisation they have been engaging the government and other stakeholders  in a bid to raise the contribution amount.

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According to the current contribution. A worker who has worked for 30 years being deducted Ksh.200 monthly can only take home Ksh.144,000 (subject to inflation) upon retirement. Such an amount ultimately leaves retirees exposed to old-age poverty.

In the event that the new rates take effect. A worker earning 50,000 a month and having worked for 30 years being deducted 6% with an equal top-up from the employer will take home Ksh.2.1 million (subject to inflation) upon retirement.

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