NAIROBI, Kenya — The Central Organization of Trade Unions (COTU-K) has accused sections of Kenya’s private pension industry of orchestrating a campaign to undermine reforms at the National Social Security Fund (NSSF), arguing that opposition to increased worker contributions is driven by commercial interests rather than concern for employees.
In a statement signed by Secretary-General Dr Francis Atwoli, COTU claimed that some private pension providers and industry associations are spreading misinformation about the implementation of the NSSF Act, 2013, in an effort to protect their dominance in the retirement savings market.
The workers’ umbrella body said the emergence of a stronger and better-performing NSSF has unsettled some private pension schemes that have historically managed a significant share of workers’ retirement savings.
“Most of the noise currently being generated around the implementation of the NSSF Act of 2013 is not motivated by concern for workers, the sole beneficiary of the enhanced benefits, but by commercial interests,” COTU said.
The union maintained that NSSF remains Kenya’s primary social security institution and argued that universal social protection is consistent with both constitutional principles and international labour standards. It cited Article 43 of the Constitution, which guarantees every Kenyan the right to social security.
COTU also took issue with recent actions by employer groups and pension sector lobby organisations. The union criticised the Agricultural Employers Association (AEA) for reportedly advising employers to abandon the enhanced NSSF contribution framework and revert to the previous Sh200 contribution regime.
According to COTU, such guidance contradicts provisions of the NSSF Act and risks weakening workers’ social security protections.
The statement further singled out private pension sector stakeholders, including the Association of Pension Trustees and Administrators of Kenya (APTAK), accusing them of creating confusion about the legal status and implementation of the NSSF reforms.
Atwoli warned that COTU would continue exposing what it described as anti-worker campaigns aimed at frustrating the growth of the national pension fund.
The union defended the performance of the NSSF, noting that the fund has recently posted some of its strongest investment returns. COTU said the fund recorded returns of approximately 11 per cent in the 2023/24 financial year and 17 per cent in the 2024/25 financial year.
“These are returns that many pension schemes would envy,” the statement said.
COTU also argued that even if every private pension scheme ceased operations, the State would still retain a constitutional obligation to provide social security to citizens. The organisation stressed that private pension plans should complement, rather than replace, the national social security system.
COTU reaffirmed its support for the reforms, saying it would continue to defend the NSSF as a critical pillar of social protection and retirement security for Kenyan workers.
