Nairobi — A three-judge bench of the Employment and Labour Relations Court has declared the National Social Security Fund (NSSF) Act null and void ordering a prohibition of mandatory deductions from employee earnings.
In a judgement following a consolidated petition filed by the Kenya County Government Workers' Union, Kenya Tea Growers Association, the Agricultural Employment Association and six others, the court cited monopoly and violation of workers' freedom of choice.
The court ordered NSSF to refrain from compelling or requiring mandatory listing of employers or employees whether registered as a member of any retirement benefit scheme or not to register.
Justices Nduma Nderi, Hellen Wasilwa and Monica Mbaru also cited violation of key provisions of the constitution during the enactment of the law, including failure by the National Assembly to refer the legislation to the Senate for concurrence.
"A declaration that the NSSF Act No.45 of 2014 has implications on County Finances and therefore the Bill ought to have been tabled before the Senate prior to its enactment in terms of Articles 205(1) and 110 of the Constitution and to this extent the Act is null and void," the bench ruled in a decision relayed by the court on Thursday.
The judges also found the NSSF Act to have been inconsistent with the provisions of Article 10 (1) (b) and (c) of the Constitution "as read with Section 3 of the Competition Act."
They noted that to the extent the law fives the NSSF a monopoly...
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