NSSF Gets Nod to Increase Contribution

NSSF to me feels like a giant legal pyramid scheme especially in Kenya where we have more people joining the workforce, and by law the new employees join this massive pyramid at the bottom.

Higher NSSF Contribution For Workers

“Saving KES 200 is a joke” these were the words of President Ruto when proposing the enforcement of the NSSF Act 2013. The Act proposes the increment of the NSSF rate from the current 200 to KES 2,160 meaning employers and employees will be contributing KES 1,080 each towards the fund. 

Hands down this is a genius way to finance Kenya Kwanza projects. 

The Federation of Kenya Employers have come out to say there are issues around the effecting of the NSSF Act 2013. This follows the increase of NSSF contribution that will see the wage bill go up starting next month. The federation has also argued that the pension contribution will also affect the employee's take home pay and employment in the country. The total contribution by both the employee and employer will be capped at Sh2,160 as provided by the Act. NSSF has stated that this move will work for the good of the workers in the long run.

Begging the question if it is good for you, why make it a law? A recent study found that Kenyans’ net savings has gone up, does that mean Kenyans don’t trust the government? Clearly, Kenyans are saving and the targeted contributors most likely have a private pension scheme where they contribute a lot more. I'm talking about thousands. Secondly, NSSF allows for Kenyans to contribute additional funds at will to the fund; how many contributions are done at contributor’s volition? If any, if not can NSSF determine why. Why are Kenyans opting to put their savings into SACCOs, Money Market Funds, Private Pension Schemes and last I checked even pyramid schemes and not to NSSF?

Is there no incentive to save with NSSF? Or perhaps the scandals that surround the institution?

NSSF to me feels like a giant legal pyramid scheme especially in Kenya where we have a young population and more people joining the workforce, and by law the new employees join this massive pyramid at the bottom. Those at the bottom pay those above and the chain continues. The pyramid might never crumble, but what does inflation do to your savings? (say it louder)  

Don’t get me wrong, I have more questions and speculations and definitely happy to get your thoughts on the proposed NSSF Act. Saving towards retirement is critical, especially now that our lifespan keeps going up. In one way or the other you should be thinking of your retirement and working towards it. NSSF is definitely one of the avenues!

Kenya's and South Sudan Border

Kenya's borderline has always been an issue of contention with almost all its neighbors. The most recent was Somali on the Indian Ocean border and now South Sudan is accusing Kenya of grabbing its land. Juba says Uganda and Kenya have been reported to the African Union for claiming part of the South Sudan borderline. Kenya has been accused of taking 42 points of the borderline at Nadapal, a settlement on a key crossing point and trade route between the two countries.

Reduced Power Prices

In a new revised EPRA electricity charges, Kenyans will pay a reduced price of 3.8 percent at Sh6.59 per unit from 7.18 per unit. The reduced price comes as a result of lower global crude prices which have subsequently eased the cost of producing thermal power.

Terror Alert

Through its embassy in Nairobi, the US government has warned its citizens of a possible terror attack in Nairobi. It has highlighted areas frequented by foreigners and tourists as possible targets for terror groups. Barely a month ago the US Embassy in Dar es Salaam, Tanzania issued a security alert to its citizens over what it termed as possible planned attack.

Subsidized Fertilizer E-voucher 

The ministry of agriculture has unveiled an e-voucher programs for farmers to access subsidized fertilizer. The e-voucher includes a seven-step application process. According to the Ministry of Agriculture, 4.3 million farmers were already registered in the program.