Central Organisation of Trade Unions (COTU) Secretary General Francis Atwoli has thrown his weight behind the government as they plan to double NHIF contributions.
Through a statement, Francis Atwoli termed the move beneficial to Kenyan workers as he called out leaders politicizing the whole issue.
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“The Central Organization of Trade Unions (Kenya), COTU (K) has noted with concern the misinformation and political narratives surrounding the continued implementation of the National Social Security Fund (NSSF) Act of 2013. As the voice of Kenyan workers, we affirm that the full implementation of this Act is not only beneficial but necessary for securing workers’ financial futures.
First and foremost, it is critical to clarify that NSSF is not a tax. NSSF is a structured mandatory savings mechanism aimed at ensuring that workers retire with dignity. Unfortunately, most of those politicizing NSSF enjoy a superior pension or are assured of income streams through the numerous business ventures that they own.
As COTU (K), we hold the view that if anyone genuinely care about workers, they should fully support NSSF in its mission to eliminate old-age poverty by ensuring that every Kenyan saves for retirement. A well-structured pension system provides both a lump sum payout and a monthly pension, enabling retirees to maintain a decent standard of living.” he said
In the new structure, NHIF contributions will hike from Ksh 2,160 to Ksh 4,320 with a similar amount to be matched by the employer.
The changes which will take effect in February this year will further impact pay slips which have already been affected by the introduction of the housing levy among other deductions.
