Proposed NSSF bill a 'mixed bag' for Kenyans
05 December 2013, 08:12
Nairobi - Kenyans will see their collective earnings shrink if a proposed bill is signed into law by president Uhuru Kenyatta.
The National Social Security Fund NSSF bill is currently awaiting presidential ascent and if it goes through, will see Kenyans part with up to 6% of their monthly earnings.
This will be a huge dent considering earning individuals currently pay a common rate of KES 200.
Further to that, the bill will also see employers forced to pay their employees fees to the body at the end of every month which will either see them pay double in the case of private schemes already in place or stick to one, which might see most opt for NSSF.
An advantage of the new bill though, is that retirees will earn a monthly pension as opposed to a one off payment once they retire from active duty.
And those that do not have private savings funds will also be boosted if the bill is signed into law.
On the other hand, with the prevailing economic climate and the reputation the NSSF holds in the public domain, it could be a risky move for the country.
Robert Oloo, a Nairobi resident believes the bill will be great news for the future generation.
" It is good because the lower earners will be able to have a consolidated fund and again it will help once retired because one can plan on a monthly basis. A lumpsome is dangerous, he said.
On the other hand for the ones with big budgets and shrinking salaries like Evans Kabure, it is not so good news.
" The proposal is good but at the end of the day, where will the extra money we lose on a monthly basis be catered for? We already have small budgets and to think that some more will go away is difficult. Added to that, the NSSF is a corrupt institution as we all know. So will they keep our funds well? he posed.
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