In response to Raila Odinga’s resistance to the Executive’s proposal to raise the mandatory monthly withdrawal for the national pension system from Ksh. 200 to 6% of an individual’s monthly wage, President William Ruto has mocked him.
The President claimed that Odinga was out of touch with reality and opposed a proposal that had been accepted by the Central Organization of Trade Unions (COT) and the Federation of Kenya Employers (FKE) (COTU).
The Head of State responded to Odinga’s request that the Scotland Yard, a global investigative body, look into instances of extrajudicial executions and police excesses in the nation.
On Friday, President Ruto retaliated against Azimio la Umoja One Kenya by releasing the annual report on the state of the judiciary and administration of justice for the fiscal year 2021–2022.
The NSSF increase is intended to, at least in theory, increase national savings and reduce foreign borrowing while managing a debt load that has now reached Ksh. 9 trillion.
Since our savings are currently between 10 and 12% of our GDP, we may increase it to between 30 and 40% of our GDP by increasing them. That is the most reliable basis for managing our development program, not going on a borrowing binge; after all, the money we are borrowing comes from other people’s savings, and we will pay dearly for it, the President remarked.
“We have already spoken to COTU and contacted the FKE, and everyone, with the exception of the opposition, has agreed that we must boost our savings from Ksh. 200 per month to 6% of our salary. I want to kindly request that our rivals “wake up and smell the coffee.”
COTU has welcomed the president’s proposal on higher NSSF deductions, calling it long overdue and pointing out that Kenyan employees’ monthly remittance of Ksh. 200 is the lowest in the region of East Africa.
After 30 years of contributions, Atwoli, the body’s secretary general, calculated that a worker’s retirement fund would be Ksh. 144,000.
Additionally, the government is pressing for 1.7% National Health Insurance Fund (NHIF) contributions for people making more than Ksh. 100,000 per month.