CS Kazungu Kambi ordered to solve NSSF row in 14 days

NAKURU, KENYA: An Industrial court has given Labour Cabinet Secretary Kazungu Kambi 14 days to convene a meeting with workers and the National Social Security Fund (NSSF) to resolve the stand-off over increased deductions.

Justice Byrum Ongaya sitting in Nakuru directed that the meeting looks into ways of reaching an amicable solution to multiple suits pitting workers and employers against NSSF over newly increased statutory deductions.

He issued the directions following a petition filed by Kenya Plantations and Agricultural Workers Union (KPAWU) seeking a stay of execution of the new NSSF Act, saying some of its provisions offended the Constitution. “Proceedings of the tripartite meeting by the Cabinet Secretary and its resolutions should be filed in court within the next two weeks,” Ongaya said.

ORDERS EXTENDED

He gave the order after the CS failed to comply with earlier directions by the court that he convenes the meeting aimed at solving the deductions impasse. The court also extended orders barring NSSF from effecting the deductions until final determination of the matter.

Lawyers from all parties who were present in court agreed that the execution of the new rates be deferred until final judgement of the case.

KPAWU averred that among the offending sections is Section 19(1) of the NSSF 2013 Act, which provides that every employer with one or more employees shall register them with NSSF to enable him/her access public services.

KPAWU also contended that it was wrong for the Government to pressure workers to provide social support to all Kenyans while it was its duty to bear the burden. “The petitioners feel employers should not be forced to contribute to the fund as it should be a voluntary activity. So, they fear that if allowed, the new scheme could cripple the old social security system,” said Ongaya.

But NSSF represented by lawyer Fred Ngatia accepted that the matter be consolidated with 27 other suits which have since been transferred to Nairobi Industrial Court. Ongaya said that issues raised were of a serious nature that put on focus arguable legal points on whether the NSSF Act is constitutional or not, adding that consolidating them will ensure the decision reached is enforceable and does not raise conflict.