๐๐๐ญ๐ข๐ซ๐๐ฆ๐๐ง๐ญ ๐๐๐ง๐๐๐ข๐ญ๐ฌ ๐๐ฎ๐ญ๐ก๐จ๐ซ๐ข๐ญ๐ฒ (๐๐๐) ๐ฎ๐ซ๐ ๐๐ฌ ๐๐๐ง๐ฒ๐๐ง๐ฌ ๐ญ๐จ ๐๐ฆ๐๐ซ๐๐๐ ๐ญ๐ก๐ ๐ฎ๐ฉ๐๐จ๐ฆ๐ข๐ง๐ ๐ข๐ง๐๐ซ๐๐๐ฌ๐ ๐ข๐ง ๐ฉ๐๐ง๐ฌ๐ข๐จ๐ง ๐๐๐๐ฎ๐๐ญ๐ข๐จ๐ง๐ฌ ๐๐ฌ ๐ ๐ฌ๐ญ๐๐ฉ ๐ญ๐จ๐ฐ๐๐ซ๐๐ฌ ๐๐ข๐ง๐๐ง๐๐ข๐๐ฅ ๐ฌ๐๐๐ฎ๐ซ๐ข๐ญ๐ฒ ๐ข๐ง ๐ซ๐๐ญ๐ข๐ซ๐๐ฆ๐๐ง๐ญ.
RBA Chief Executive Officer Charles Machira stated that “the proposed in the National Social Security Fund (NSSF) Act 2013, it isnโt a tax. Itโs an investment in your future to ensure retirees can live dignified lives.”
The RBA CEO added that the Act provided for a phased escalation of the contributions by both employer and employee and the formulas proposed under the schedules that contributions would double from the current Sh. 4,320.
โI would like to encourage our people in the labour force that you have been saving Sh400 before the NSSF Act 2013; the provision now is that you are saving Sh. 8,640, which is employee money, and the employer contributes 50 per cent of that for those who have salaries beyond Sh. 72, 000, but we can still apply the formula on a pro-rata basis for those earning a lesser amount,โ Machira said.
He further clarified that the money does need to fully go to NSSF, adding that for employees in other pension schemes, RBA offers opportunities to โContract outโ meaning that an amount that is beyond a particular threshold, in this case Sh. 960 from February, can remain in the pension scheme.
โWhat Iโd like Kenyans to appreciate is that the space weโre enhancing, we would like people to retire with adequate retirement income; NSSF is playing a critical role in filling the gap of adequacy in retirement,โ Machira added.
