COFEK Moves to Court Seeking Suspension of NSSF Penalties Amid Contribution Dispute

Date:

NAIROBI, Kenya — The Consumers Federation of Kenya (COFEK) has petitioned the High Court seeking urgent orders to stop the enforcement of penalties and sanctions linked to enhanced National Social Security Fund (NSSF) contributions, arguing that a recent directive issued by the Fund contradicts a Court of Appeal ruling and violates constitutional provisions.

In an application filed by COFEK Secretary General Stephen Mutoro, the consumer lobby is seeking conservatory orders restraining the NSSF from imposing penalties, surcharges, sanctions, or any other enforcement measures against employers and contributors over alleged non-compliance with contribution obligations arising from disputed directives issued after the Court of Appeal judgment delivered on May 29, 2026.

The petition challenges a public notice issued by the NSSF on June 5, 2026, titled Clarification on the Status of NSSF Contributions, which directed employers and employees to continue remitting contributions under the enhanced contribution framework established by the NSSF Act, 2013.

According to COFEK, the notice is unconstitutional, unlawful, and inconsistent with the appellate court’s determination, creating confusion among employers and workers across the country.

“Unless this Honourable Court intervenes urgently and grants appropriate conservatory relief, employers and employees shall continue to act upon the impugned notice, thereby exposing millions of Kenyans to continuing prejudice, uncertainty and potential financial liability,” the application states.

The federation argues that the disputed notice continues to influence payroll administration and statutory remittance decisions nationwide, affecting millions of workers during every salary cycle.

COFEK is also seeking orders compelling the NSSF and relevant government agencies to issue a public advisory informing employers, employees, and contributors that the dispute remains before the court and that no adverse compliance action should be taken against individuals relying on the contested directives.

Mutoro contends that the notice violates several constitutional provisions, including Articles 10, 35, 46, and 47 of the Constitution, which guarantee national values and principles of governance, access to information, consumer rights, and fair administrative action.

The petition further argues that the directive undermines the authority of judicial decisions by effectively attempting to circumvent the Court of Appeal ruling.

The dispute comes against the backdrop of ongoing legal battles over the implementation of enhanced NSSF contribution rates under the NSSF Act, 2013. The matter has generated significant public interest due to its direct impact on employers, employees, and the broader labour market.

COFEK maintains that the case raises substantial constitutional questions touching on social security rights, labour relations, consumer protection, statutory deductions, and the rule of law. The organisation has therefore urged the High Court to certify the matter as urgent and prioritise its hearing.

The matter is currently pending before the High Court.

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