Kenya’s labour movement has stepped into the ongoing pensions debate, accusing private retirement scheme operators of running a coordinated effort to weaken the National Social Security Fund (NSSF) as legal uncertainty around contribution rates continues.
The Central Organisation of Trade Unions (COTU) says it has observed what it calls a growing campaign by some players in the private pensions sector to influence public opinion against NSSF. In a statement issued on Wednesday, Secretary General Francis Atwoli said workers were being exposed to misinformation meant to distort the purpose and progress of the state pension scheme.
According to COTU, the tension is not just about policy or legal interpretation, but also about competition for workers’ retirement savings. The union argues that private pension firms are uncomfortable with NSSF’s expansion and reforms under the NSSF Act, 2013, which seeks to increase contributions and widen coverage.
“It has come to the attention of the Central Organization of Trade Unions (Kenya), COTU (K) that certain players within Kenya’s private pension industry are engaged in a deliberate campaign of misinformation, skulduggery, and fear mongering aimed at misleading workers, undermining the National Social Security Fund (NSSF) and frustrating its growth into a strong and competitive national social protection institution,” COTU said.
Atwoli said the union had noted what he described as “misinformation, skulduggery, and fearmongering” aimed at undermining the fund. He insisted that such narratives are misleading workers at a time when clarity is needed most.
The dispute comes at a time when Kenya’s pension sector is adjusting to shifting legal and regulatory decisions around NSSF contributions. Court rulings and appeals have created confusion among employers on whether to apply the higher contribution rates introduced under the 2013 law or revert to older rates pending final determination.
COTU maintains that despite the legal debates, NSSF remains the country’s main social protection pillar. The union insists that weakening the institution would harm millions of workers who depend on it for retirement security.
Atwoli warned that the labour movement would not remain silent if the situation continues. He said, “We shall not hesitate to expose anti-worker positions and commercial interests behind these efforts,” arguing that the pushback against NSSF reforms is driven more by profit motives than worker welfare.
The union also criticised guidance reportedly issued by the Agricultural Employers Association (AEA), which it claims encouraged some employers to reduce contributions while still engaging private pension schemes. COTU says such mixed messaging is creating confusion in workplaces already struggling to interpret court decisions.
It further warned organisations under the Association of Pension Trustees and Administrators of Kenya (APTAK) against what it termed deliberate attempts to misrepresent the legal standing of NSSF and ongoing court outcomes. According to the union, this risks destabilising trust in the national pension system.
The NSSF Act, 2013, has long been a subject of legal and political debate. Supporters of the reforms argue that higher contributions are necessary to improve retirement payouts and strengthen long-term savings. Critics, however, have raised concerns about reduced disposable income for workers and the need for more flexibility in choosing retirement plans.
Recent court developments have added another layer of uncertainty, with stakeholders divided on how employers should proceed during the transition period. This has prompted renewed calls for clear guidance from regulators to avoid further confusion in payroll systems across the country.
COTU maintains that NSSF should remain the central institution for social security in Kenya, arguing that private schemes should complement rather than compete with it. The union says it will continue monitoring developments and speak out against any efforts it believes undermine workers’ interests.
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