The Central Organization of Trade Unions (COTU) has taken aim at the Federation of Kenyan Employers (FKE), warning the employers’ body to stop what it described as “meddling” in matters related to workers’ social security.
In a press statement issued on Tuesday, COTU Secretary General Francis Atwoli accused the FKE of spreading misinformation and attempting to turn workers against the newly implemented National Social Security Fund (NSSF) contribution rates.
The dispute follows recent remarks by the FKE, which raised concerns over what it termed a shrinking disposable income for Kenyan workers after the rollout of the fourth phase of the NSSF Act, 2013. The employers’ federation argued that the higher deductions would pile more pressure on employees already grappling with the high cost of living.
Atwoli rejected the claims, describing them as “disingenuous,” and insisted that the FKE has no authority to speak on behalf of workers about their retirement savings.
“The FKE should stay in its lane and focus on employer obligations. Issues of wages, benefits, and the long-term social protection of employees fall squarely under the mandate of trade unions,” Atwoli said.
He further accused the employers’ body of attempting to dodge its legal responsibility to match the increased NSSF contributions.
The controversy centres on the implementation of “Year 4” of the NSSF Act, which has sharply increased the ceiling for pensionable earnings. From February 1, 2026, the Lower Earnings Limit (Tier I) rose to KSh 9,000 from KSh 8,000, while the Upper Earnings Limit (Tier II) increased to KSh 108,000 from KSh 72,000.
Employers have argued that the new rates raise the cost of doing business and reduce employees’ take-home pay. COTU, however, maintains that the changes are critical to guaranteeing Kenyan workers a dignified retirement and ending what it called the “pittance” provided under the old flat-rate system.
Atwoli called on the government to disregard what he termed “scare tactics” from sections of the private sector and ensure full compliance with the law.
He added that social security remains a fundamental human right and should not be subjected to what he described as “business-centric propaganda,” as the country pushes for stronger and more sustainable retirement benefits for workers.
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