Employers warned to revert to old NSSF deductions or risk jail
National
By
Esther Nyambura
| Jun 18, 2026
The Law Society of Kenya (LSK) has urged employers nationwide to immediately halt salary deductions under the National Social Security Fund (NSSF) Act, 2013.
In a statement, the society warned that organisations continuing to enforce the nullified framework risk legal consequences, including imprisonment.
"Continued deductions under a statutory framework declared unconstitutional create significant legal uncertainty regarding the legality of such deductions, accountability for funds collected, and the rights and remedies available should the ELRC judgment be affirmed," said LSK’s President Charles Kanjama.
The remarks follow the June 2 ruling by the Court of Appeal, which declined to suspend a judgment declaring the NSSF Act, 2013, unconstitutional.
Under the nullified Act, both employers and employees were required to contribute six per cent of an employee’s gross salary.
This marked a sharp increase from the flat Sh200 monthly contribution provided under the previous NSSF Act, Cap. 258.
For example, a worker earning Sh50,000 would have contributed Sh3,000 monthly, matched by an equal amount from the employer.
In a ruling delivered on Friday, appellate judges Wanjiru Karanja, Kairu M’Inoti and Pauline Nyamweya dismissed an application by the NSSF Board of Trustees seeking to stay the execution of a September 2022 judgment by the Employment and Labour Relations Court (ELRC), which nullified the Act.
The judges held that although NSSF had raised arguable grounds of appeal, it had failed to demonstrate that the appeal would be rendered nugatory if the stay orders were denied.
“In the end, and since the applicant has only satisfied one of the two limbs necessary for the grant of the orders sought under Rule 5(2)(b) of this Court’s Rules, we find no merit in the Notice of Motion dated October 14, 2022, which is hereby dismissed with costs,” the judges ruled.
According to Kanjama, without a judicial basis to support the enhanced contribution framework, employers must immediately pivot.
"Pending determination of the substantive appeal, employers must immediately cease all deductions under the NSSF Act, 2013 and revert to the contribution regime that existed prior to its implementation," said Kanjama.
Adding that they shall monitor compliance and consider all lawful measures available against persons found guilty of contempt.
"Obedience to court orders is not optional. The Society shall closely monitor compliance and consider all lawful measures available, including instituting contempt of court proceedings against persons found guilty of deliberate disobedience. Persons found guilty may be subjected to sanctions including fines, sequestration of assets and imprisonment."