The Central Organization of Trade Unions (Kenya) (COTU-K) has moved to reassure workers and employers over continued remittance of National Social Security Fund (NSSF) contributions following recent developments in court regarding the NSSF Act, 2013.
In a statement on Saturday, June 6, the workers' body said it had taken note of a recent Court of Appeal ruling which, according to the organization, appeared to create uncertainty within the pension sector by seemingly contradicting an earlier judgment delivered by the same court in February 2023.
COTU maintained that workers should continue contributing under the current contribution framework, arguing that the earlier court decision remains the applicable legal position.
"As the umbrella body representing Kenyan workers, we wish to inform the public that, as Kenyan workers, we shall continue contributing under the enhanced contribution framework provided for under the National Social Security Fund (NSSF) Act, 2013, which, in our view, remains valid and enforceable by dint of the judgment delivered by the Court of Appeal on 3rd February, 2023," the statement read.
COTU questioned how the recent court action emerged despite what it described as a matter that had already been conclusively determined.
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"As COTU (K), we think that it is absurd, astonishing, that the court could purport to issue orders on a matter that had long ceased to exist before them after the Court had already rendered a substantive judgment on the appeal in February 2023," the statement added.
COTU argued that previous applications related to the matter had effectively become irrelevant once the substantive judgment was delivered.
"In our opinion, the application for stay of execution filed in October 2022 was conclusively overtaken by events upon delivery of that judgment and was no longer a live controversy capable of determination. In law and procedure, once the Court pronounced itself on the substantive appeal, any interlocutory application associated with that appeal became spent and incapable of sustaining further judicial action
"It is therefore, in our opinion, inconceivable that a Court of such stature could subsequently purport to determine an application that had effectively been extinguished by its own judgment," the statement further read.
COTU further noted that the matter later reached the Supreme Court but argued that the higher court did not reopen previous applications.
"What makes this situation even more perplexing is that the Supreme Court, upon hearing the subsequent appeal, did not revive the spent application but merely remitted specific substantive issues back to the Court of Appeal for determination," the statement noted.
Even as questions continue over the legal interpretation of the court decisions, COTU called for greater clarity for workers and employers who rely on the pension system.
"As COTU (K), we think there is need for an explanation and clarification to Kenyan workers, employers, pensioners, and the public whose retirement savings are a matter of grave public concern," the statement read.
The union emphasized that workers should not stop remitting contributions and urged employers to continue complying with existing regulations.
"However, even as we await the clarification, COTU (K) wishes to make it abundantly clear that Kenyan workers will continue making NSSF contributions in accordance with the NSSF Act, 2013 and the applicable contribution rates currently in force.
"Employers should likewise continue complying with the law by remitting the required contributions, and we call upon the NSSF to heighten their compliance mechanism to ensure that some employers do not take advantage of this ambiguity that ought to be made clear soonest," the statement concluded.
Elsewhere, Labour Cabinet Secretary Alfred Mutua has directed employees to pay house helps at least Ksh18,047 per month.
In a legal notice dated Friday, June 5, Mutua said the new changes take effect immediately; the rule also applies to gardeners, day watchmen, messengers and sweepers.
Domestic workers will enjoy a Ksh1,934 increase to their minimum wage of Ksh16,113 in 2024. This new minimum pay applies to domestic workers hired in Mombasa, Nairobi, Nakuru, Eldoret, and Kisumu.
Mutua instructed that employers in former municipalities such as Ruiru, Mavoko and Limuru will be required to pay domestic workers a minimum of Ksh16,550.
Meanwhile, he set the minimum wage for workers in smaller towns at a minimum of Ksh9,268 per month.
Employers who breach the directive risk a three-month jail term or a fine of Ksh50,000 if found culpable by a court of law.
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