Ruto Defends High NSSF Deductions, Claims Will Increase National Savings
President William Ruto has defended the government’s quest for larger National Social Security Fund (NSSF) contributions, arguing that bigger savings are important to Kenya’s economic growth.
Speaking on Saturday, June 13, in Kakamega, the Head of State stated that the government agreed with employees through their representatives to save more by contributing 6% of their monthly income.
“I urged those who are employed and those in the formal sector that, as a country, we should have more savings,” Ruto said during the launch of Shirikiana Sacco in Kakamega.
“For that reason, we have agreed that every employee will pay 6 per cent of their salary and the employer will match it with another 6 per cent. All that money is for that employee,” he added.
The President stated that the NSSF reforms have greatly increased the fund’s savings, disclosing that NSSF assets have grown from Ksh312 billion to Ksh670 billion in just two years.
President Ruto: NSSF savings will hit Sh1 billion next year pic.twitter.com/floarH45WN— NTV Kenya (@ntvkenya) June 13, 2026
According to Ruto, the country is on track to expand its savings pool, stating that robust national savings are critical for economic growth and long-term financial stability.
“By 2027, we will have hit Ksh1 trillion in NSSF savings, and that is how to build the foundation of a country’s economy,” he stated.
“The SACCO movement in Kenya is the largest in Africa, kwa miaka miwili pesa ya NSSF ni Ksh. 670 billion.” ~ Ruto pic.twitter.com/EHV0zJMy42— Lightcast TV Kenya (@Lightcasttvke) June 13, 2026
Ruto’s remarks come amid an ongoing debate over NSSF deductions following a Court of Appeal ruling dismissing an application to suspend a judgment declaring the NSSF Act, 2013, unconstitutional.
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Despite the ruling delivered on May 29, 2026, NSSF directed employers to continue deducting and remitting contributions at the current enhanced rates.
In a statement issued on June 5, the Fund maintained that the ongoing court proceedings do not affect the contribution rates currently being remitted by employers and employees.
The position was also backed by the Federation of Kenya Employers (FKE), which advised employers to continue remitting contributions under the NSSF Act, 2013.
However, the Law Society of Kenya (LSK) has taken a different position, warning employers that they risk legal action if they continue deducting higher NSSF contributions without a valid legal basis.
LSK President Charles Kanjama on Saturday, June 13, said court orders must be obeyed unless overturned through proper legal processes.
Kanjama maintained that employers should either revert to the previous Ksh200 monthly contribution rate or obtain employees’ consent before making deductions above the statutory threshold.
Ruto Defends High NSSF Deductions, Claims Will Increase National Savings
