NSSF Collections Slump By Ksh3 Billion Over Mass Layoffs

NSSF CEO Dr Anthony Omerikwa. [PHOTO/ COURTESY]

Members’ contributions for the National Social Security Fund (NSSF) reduced by close to Ksh3 billion in a period of two years, attributable to mass layoffs.

NSSF Managing Director Anthony Omerikwa appearing before the Public Investment Committee (PIC) said that collections could slump further if the economy failed to improve.

“Our contributions have been affected by mass layoffs due to downsizing by employers occasioned by the poor performance of the economy, collapse of businesses and a general financial crisis,” Omerikwa told the committee.

NSSF’s collections in 2018 had declined from Ksh31.3 billion recorded in the previous financial year to Ksh28.4 billion.

Read: Kenya Power Reveals It Fired Over 100 Employees Over Crime

In 2018 showed that 1,620 bank employees lost their jobs as the lenders took steps to reduce the cost of doing business by cutting the manpower.

It also emerged that the fund has a deficit of unremitted members’ contributions by employers that has accumulated over the years to about Ksh5.6 billion. Omerikwa complained that recovery efforts were being hampered by numerous court cases.

the fund is planning to increase monthly contributions to Sh1,080 from July 1. The move has been necessitated after  Treasury joined out-of-court talks with workers’ unions to resolve a dispute over the retirement deductions.

Currently, employees contribute Ksh200 per month.

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