Supreme Court Orders Fresh Hearing on NSSF Act and Pension Contributions
The Court of Appeal’s orders allowing President William Ruto’s administration to increase mandatory pension contributions under the National Social Security Fund (NSSF) scheme were lifted by the Supreme Court on Tuesday, February 21.
Chief Justice Martha Koome, delivering the ruling on behalf of a seven-judge bench, highlighted an error in the Court of Appeal’s decision, stating that it erroneously overturned a ruling by the Employment and Labour Relations Court (ELRC) by claiming a lack of jurisdiction.
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In the initial ruling, the Court of Appeal granted the NSSF Act 2013, asserting that the matter should have been addressed by the High Court rather than the ELRC. Chief Justice Koome mandated a remittance of the case to the Court of Appeal for a determination of the substantive merits of the ELRC’s judgment.
Considering the public interest and time spent in legal proceedings, she emphasized the importance of a priority hearing.
The Chief Justice ordered a fresh hearing by the Court of Appeal to assess whether the case possesses sufficient legal grounds for approval or dismissal. Consequently, the NSSF Act 2013 case, entangled in the legal system for over nine years, will persist.
After the Act’s enactment, five petitions challenging its legality were filed, with two at the High Court and three at the ELRC. The High Court transferred the two petitions to the ELRC, citing their relevance to employment matters within its jurisdiction.
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The ELRC, upon review, declared the NSSF Act 2013 unconstitutional on four grounds, including a lack of public participation and the Act’s failure to be presented to the Senate before enactment.
Additionally, the Court of Appeal determined that the Act aimed to grant NSSF a retirement benefits monopoly and that mandatory registration and contribution violated employees’ rights to choose pension arrangements.
The ELRC’s judgment was appealed at the appellate court, which overturned the ruling, arguing that constitutional matters on the NSSF Act’s validity were reserved for the High Court.
The Supreme Court, in its ruling, asserted that the Employment Court’s decision pertained to major players in the employment and labour relations sector, falling within its jurisdiction.
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Supreme Court Orders Fresh Hearing on NSSF Act and Pension Contributions
