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Workers threaten action over new NSSF Act

03 June 2014, 12:45 Ken Wekesa

Mombasa - Dock Workers Union have filed an application in court to suspend the new NSSF Act and threatened to down their tool if the new Act takes effect this month as proposed.

Speaking to the press at the Union’s office in Mombasa, the Union Secretary General, Simon Sang said there is need to review the NSSF Act to resolve the looming conflict that makes it compulsory for all employers and employees to join the fund.

“If the new NSSF Act is not suspended until the contentious issues are resolved, we are ready to down our tools because we cannot remit our deductions to inferior pension schemes,” said Sang.

Sang said the Kenya Ports Authority workers will not remit their deductions to the NSSF, urging the Fund board to improve its governance structures and administration with a view of making it more competitive and appealing to workers and employers who wish to make retirement arrangements with the Fund.

“NSSF must allow employers and employees to elect members of the NSSF Board because they are the stakeholders that contribute to the scheme to ensure there is good representation,” said the Secretary General.

The dock workers said the NSSF scheme does not meet the 70% threshold of the basic salary earned at the time of retirement in their 12% savings.

Sang said the current PAYE is a burden to Kenyans and the social services returns is not in accordance with the Kenyan PAYE remits compared to western countries.

“The government deducts a lot of money from the PAYE yet the social service it provides does not match the funds it collects,” said Sang.

The Dock Workers Union chairman, Jeffa Kiti echoed Sang's sentiments and faulted the government for introducing a scheme that is marred with corruption.

“The government has introduced what we already have and we will not allow that to happen because they have not given an explanation for the creation of the new scheme," said Kiti.

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