Employers' federation supports new NSSF rates, accuses Atwoli of false allegations

On February 3, 2026, COTU Secretary General Francis Atwoli accused FKE of spreading misinformation and attempting to incite the workforce against the newly implemented National Social Security Fund (NSSF) contribution rates.

In a statement by FKE Chief Executive Officer Jacqueline Mugo, the employers’ body reaffirmed its support for the enhanced contribution structure, contrary to Atwoli's claims. 

FKE stated that the rates were anchored in earlier contribution plans and actuarial assessments when the reforms were rolled out.

The employers' Federation argued that building pension savings is key to strengthening a savings culture and protecting workers’ financial security after they exit employment.

"FKE therefore urges employers to disregard the baseless statements made by COTU (K) and to continue complying with the enhanced NSSF contribution rates as required by law as we have always done," the statement read in part. 

FKE called on employers to ignore what it termed as unfounded claims from COTU and to continue meeting their legal obligations under the updated NSSF framework.

At the same time, the body noted that rising statutory deductions have squeezed workers’ net earnings, and urged the government, unions and employers to engage in open and responsible discussions aimed at protecting disposable incomes, business performance and the sustainability of public revenues. It said structured engagement, rather than public accusations, offers a more durable path.

The statement follows sharp criticism from COTU's Atwoli, who accused FKE of overstepping its role and attempting to mislead workers over the latest phase of NSSF implementation.

According to Atwoli, he argued that retirement benefits and worker welfare fall squarely under the mandate of trade unions, and suggested the employers’ lobby was trying to evade its obligation to match the higher deductions.

"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," the COTU boss stated.

The newly updated NSSF contributions took effect from February 1, 2026, whereby the lower earnings threshold for contributions rose to Ksh.9,000 from Ksh.8,000, while the upper limit increased to Ksh.108,000 from Ksh.72,000, significantly raising both employee and employer contributions.

Employers have expressed concern about the impact on operating costs and employees’ take-home pay, while unions argue the adjustments are necessary to ensure more adequate retirement savings and to move away from the low benefits associated with the previous flat-rate model.