Cotu, NSSF agree on withdrawing court cases
Labour Principal Secretary Khadijah Kassachoon, National Social Security Fund Chairman Gideon Ndambuki and Cotu Vice chairman Benson Okwaro address the press on September 6, 2016 at Sarova Whitesands Beach Resort and Spa. PHOTO | WACHIRA MWANGI | NATION MEDIA GROUP
What you need to know:
- At a joint press conference at the end of a two-day meeting at Whitesands Beach Hotel in Mombasa, NSSF Board chairman Gideon Ndambuki and Cotu deputy Secretary General Benson Okwaro announced that further meetings would be held before the end of the month to resolve the matter.
- On Monday, Cotu had given conditions for the withdrawal of the cases which included the confirmation of the NSSF Board of Trustees who had stayed in office for six months instead of the mandatory three.
- Mr Ndambuki had pleaded with Cotu to withdraw the case saying it had prevented the implementation of the new NSSF Act No 45 of 2013 which had affected the Fund’s corporate strategic plan for the period 2014-2019.
The National Social Security Fund and Central Organisation of Trade Unions (Cotu) have agreed on a roadmap to withdraw court cases barring the implementation of a new NSSF Act.
At a joint press conference at the end of a two-day meeting at Whitesands Beach Hotel in Mombasa, NSSF Board chairman Gideon Ndambuki and Cotu deputy Secretary General Benson Okwaro announced that further meetings would be held before the end of the month to resolve the matter.
On Monday, Cotu had given conditions for the withdrawal of the cases which included the confirmation of the NSSF Board of Trustees who had stayed in office for six months instead of the mandatory three.
Mr Ndambuki had pleaded with Cotu to withdraw the case saying it had prevented the implementation of the new NSSF Act No 45 of 2013 which had affected the Fund’s corporate strategic plan for the period 2014-2019.
The areas that led to the court action include section 18 that set up the pension scheme, section 19 on the registration of employers and employees, section 20 on the collection of new contribution rates and section 71 on regulation of the Fund by the Retirement Benefits Authority (RBA), said Mr Ndambuki.
According to the proposed new rates, employers and employees would have to pay upto Sh1, 080 each (total Sh2, 160) per month.
Tuesday’s agreement was witnessed by Principal Secretary for Labour Khadijah Kassachoon who hailed the two sides saying the stalemate had hampered the progress of NSSF, the only pension scheme in the country.
Mr Okwaro said that Cotu would meet other trade unions which had jointly gone to court before a final agreement is signed.
“As the Umbrella workers body in the country, Cotu (K) has remained consistent in its desire to see an effective, efficient, transparent and accountable Fund that embraces prudence in the management of workers’ funds as well as an institution that enjoys independence from any external interference”, he told the meeting.
He said that there had been positive developments at NSSF in the past three months due to efforts by the cabinet secretary for Labour Phyllis Kandie and the PS “whose doors have remained open”.
He said that Kenyans should now be able to enjoy better retirement packages as the Fund becomes stronger.
He had earlier complained of cartels that he alleged had taken over its management adding that Cotu was out to save contributors’ money.
He cautioned the government against politically interfering with the Fund as well as employers from pushing for certain clauses like non-payment of gratuity to workers.
He said that gratuity remains a negotiated item within the Collective Bargaining Agreements stating that Cotu will not allow anybody to infringe on it.
