PRESS RELEASE: DECISION BY SOME PRIVATE FIRMS TO OPT OUT OF NSSF
A section of private firms operating in the country(as reported in the local Media) are allegedly seeking to withdraw workers’ pension contributions from the National Social Security Fund, NSSF on claims of on-going board room intrigues at the NSSF.
The Central Organisation of Trade Unions, COTU (K) wishes to dispute these flimsy claims being fronted by individuals for their own personal interests and caution that such a move will leave millions of lowly- placed Kenyans working both in formal and informal establishments vulnerable and totally disadvantaged in their old age.
The NSSF remains the sole Primary Pillar Scheme for every worker and whereas a number of existing Private Pension Fund managers may be superior, it is imperative that every worker contributes to the NSSF and any other contributory scheme should come second.
Equally, the NSSF as constituted now has a new Board of Trustees that is determined to operate solely within the new NSSF Act with a pool of competent Fund Managers in place to undertake prudent management and Investment of workers’ funds hence the excuse of board room intrigues does not arise.
COTU(K) has no doubt that as currently constituted, the NSSF is set to deliver on its mandate towards the Kenyan Workers and any campaign aimed at discrediting the Fund is uncalled for since where never there has been an issue at the NSSF, COTU (K) has always come out openly and raised its concerns because as the Workers’ Umbrella body we are under obligation to guarantee our members on the safety of their funds and seek all ways possible to grow the Fund and any attempts for any individual firm to withdraw from the NSSF is ill-advised and not grounded on any law.
All Kenya Workers are by law as per the new NSSF Act duty bound to subscribe and remit their contributions to the NSSF in order to guarantee Social Protection to all.
Francis Atwoli, EBS,MBS