Government suspends new NSSF law, charges until May
21 January 2014, 16:41
Nairobi - The government has suspended the enactment of the new NSSF charges until May after consultations with stakeholders.
Labour secretary Kazungu Kambi announced after a meeting with the Federation of Kenya Employers that the charges would take effect from March.
" We have agreed to suspend it to May to allow for employers and employees to adjust to the upcoming changes as per the law, he said.
The new charges which were to take effect from the end of January have been suspended to allow employers and the government address pending issues.
Most employers had issues with the fact that most of their employees would be charged an eventual 6% fee monthly up from a flat rate of KES 200 whilst they had other arrangements on the side.
There was also the argument that the new charges would be costly employers, who have similar arrangements with employees or who would have to top up salaries of already burdened employees to ease the pain.
President Uhuru Kenyatta signed into law the 2013 NSSF bill in December last year.
The bill had drawn mixed reactions from a variety of Kenyans who baulked at the high rate of monthly payment as well as the NSSF's previous scandalous record.
The suspension of the charges drew varied reactions from Kenyans on social media, some happy with the move with others lambasting the government over their undecidedness over major issues.
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