Atwoli backs new NSSF rates, slams FKE for downplaying benefits

FKE Executive Director Jacqueline Mugo said the mandatory NSSF rate hike, while supporting long-term savings, presents a “significant issue” for disposable income. [File, Standard]

The Central Organisation of Trade Unions (Cotu-Kenya) has accused the Federation of Kenyan Employers (FKE) of deliberately misleading workers and inciting opposition to statutory National Social Security Fund (NSSF) contributions through what it terms alarmist and selective narratives on payslips and take-home pay.

In a press statement, COTU Secretary General Francis Atwoli said the employers’ lobby was misrepresenting the impact of NSSF deductions while downplaying the long-term retirement benefits guaranteed under the NSSF Act, 2013.

“Full implementation of the NSSF Act, 2013 is not optional, negotiable, or subject to selective obedience,” Atwoli said, adding that it was irresponsible for FKE to portray statutory contributions as an attack on workers’ livelihoods.

He maintained that as representatives of employers, FKE has a statutory obligation to comply with the law rather than mobilize resistance among employees. The union body faulted FKE for what it described as attempting to position itself as a defender of workers while, in reality, undermining their retirement security. “If anything, the true joy and pride of an employer must be to see their employees retire with dignity, security and peace of mind after decades of service,” Atwoli said.

The trade union federation also warned FKE against encroaching on workers’ issues, insisting that matters of wages, social security, retirement benefits and welfare fall squarely within the mandate of trade unions. “We wish to remind FKE, in the strongest terms, to keep off workers’ issues,” COTU stated.

Atwoli argued that recent remarks by the employers’ lobby on NSSF deductions neither represent workers nor reflect a genuine understanding of their lived realities.

He further accused FKE of double standards, recalling that employers have historically opposed or slowed government-led efforts to raise the minimum wage.

According to the union, FKE has consistently raised endless objections and erected hurdles, often at the expense of workers’ livelihoods, making its current claims of concern for employees disingenuous.

“It is, therefore, disingenuous for FKE to suddenly claim concern for workers while opposing policies designed to protect them in old age,” the statement read.

The union called on employers to engage constructively through established tripartite mechanisms involving government, employers and workers’ representatives, and to desist from fearmongering around NSSF reforms.

COTU further reaffirmed its commitment to defending the full implementation of the NSSF Act, 2013, saying it remains focused on advancing a pension system that guarantees all workers,both in the formal and informal sectors,a dignified retirement.