Cotu threatens to lead workers out of NSSF

Central Organisation of Trade Unions Secretary-General Francis Atwoli speaks with workers regarding Labour Day, at Solidarity House in Nairobi on April 7, 2018. PHOTO | ANTHONY OMUYA | NATION MEDIA GROUP

What you need to know:

  • Atwoli said proposed amendments to the NSSF Act 2013 were a plot to kick out the union and the Federation of Kenya Employees out of the board.
  • During his vetting in February, Labour Cabinet Secretary Ukur Yattani said he would enforce NSSF Act No 45 of 2013.

The Central Organisation of Trade Unions (Cotu) on Wednesday threatened to lead a mass withdraw of workers and employers from the National Social Security Fund (NSSF) should their representatives be kicked out of its board of trustees.

Cotu Secretary-General Francis Atwoli said proposed amendments to the NSSF Act 2013 were a plot to kick out the union and the Federation of Kenya Employees (FKE) out of the board.

POLITICIANS

Should that happen, Mr Atwoli said in a statement, the workers’ and employers’ representatives will be compelled to form their own joint pension scheme.

“If political interference in the fund continues, the joint pension scheme will be run by Cotu (K) and FKE without contributions of politicians.

"No one can assume it will render the NSSF Act impotent, and then we can see how the politicians will contribute to the fund and interfere with the same,” he said.

“It’s unconstitutional to make amendments to the NSSF law without the participation and consultation of Cotu and FKE,” he added.

LABOUR MINISTRY
The proposed changes are contained in the Statute Law (Miscellaneous) Amendment Bill 2018 sponsored by National Assembly Majority Leader Aden Duale.

But according to status tracker of all bills in Parliament on the National Assembly’s website, this specific one has been withdrawn.

NSSF manages billions of workers’ shillings and over the years, workers’ and employers’ representation has been the preserve of Cotu and FKE.

During his vetting in February, Labour Cabinet Secretary Ukur Yattani said he would enforce NSSF Act No 45 of 2013.

The Act limits the representatives stay on the board to two terms of three years each.

CONSULTATION
Mr Atwoli said the only interests he has at NSSF is to advocate for proper governance, and to protect the workers’ pension funds.

“Cotu reiterates that there must be wider consultations with the social partners before any amendments are made to the NSSF Act.

"Cotu and FKE are the real owners of the money and must be involved in any amendments to any law about their funds at NSSF,” he said.

The matter was previously a bone of contention between Cotu, FKE and then-Labour Cabinet Secretary Kambi Kazungu, even involving court battles.

In 2014, the Cabinet secretary announced the retirement of Mr Atwoli and FKE Executive Director Jacqueline Mugo on grounds that they had served beyond the six-year limit.