I will deduct Sh 2000 from workers to help me achieve my goals whether the court likes it or not – RUTO now vows to disobey the court!
President William Ruto has said that the government will review the monthly contribution to the National Social Security Fund (NSSF).
Ruto said he intends on adjusting employee payments from the current Sh200 per month payment so that it matches with how much one earns as opposed to a standard fee.
He said the government will ensure that one pays according to how much one earns so that there is a better savings plan.
Currently, the county stands on a debt of Sh8.4 trillion after Parliament pushed up the debt ceiling to Sh10 trillion.
“We need to leave an inheritance to our children, not debt and encourage a savings culture. That is the only way we can stop being slaves of our lenders. We should aim to start lending to others,’’ he said.
On Tuesday last week, the High Court in Nairobi stopped the state’s plan to increase NSSF contributions to Ksh2,068, arguing that there was no public participation involved.
The current contributions were last reviewed in 2001 increasing from the then Ksh160 to the current Ksh200.
Through the NSSF Act 2013, the government had sought to raise monthly contributions by employees from the current Sh200 monthly and demanded employers match the payout to counter what the President has envisioned.
“An order is issued prohibiting the government from compelling or requiring mandatory registration, enrolment or listing of any employer or employee whether registered as a member or any retirement benefits scheme or not ….to register, enroll or list and contribute their earnings or any party,” the judges said in their ruling.
The ruling added, “Since the NSSF Act 2013 was not presented to the Senate for enactment as a Money Bill, the Act is declared unconstitutional, null, and void.”
Ruto argued that people will higher salaries cannot save in equal measure as the ones with lower incomes.
“Do you know that everybody who works in Kenya only contributes Sh200 per month as savings even the ones who earn much more? We are re-engineering that so that all Kenyans have enough savings for their future,” he said.
He noted his government will also save for the Kenyans that are yet to be employed.
“For the ones who are not yet employed, the government will save for them. If any Kenyan saves an amount then the government will give them money equivalent to a percentage of their savings, which will go to their savings kitty,’’ he said.
