Economic policies form the foundation upon which pension funds thrive or falter. When the economic environment is favourable such that there is sustainable growth and inflation is kept in check, pension funds can fulfill their obligations to retirees. Otherwise, the financial security of pensioners is threatened.
The NSSF Act of 2013, which mandated an increase in NSSF contributions, was one of the new legislations that had a favourable effect on pension contributions in Kenya. This occurred in February of last year when the Employment and Labour Relations Court's earlier judgment to halt the NSSF Act's implementation after finding it illegal was overturned by a Court of Appeal ruling. The contribution rates increased from Sh200 to Sh600 to a maximum of 12 percent of a worker's monthly salary, with the employer matching six percent of the worker's deductions.
