KPMG, a United Kingdom-based audit company, has warned that the government's recent decision to hike the National Social Security Fund (NSSF) contributions will have a ripple effect on salaried Kenyans.
The audit firm revealed on Friday, February 7, that besides the reduction in an employee's net monthly pay, the statutory deduction will also lower the purchasing power of most employed Kenyans.
The NSSF Act of 2013 mandates that all individuals subject to the Employment Act who are 18 years of age or older and have not yet reached retirement age contribute 6 per cent of their pensionable earnings to the Fund.
As per the Act, which is currently being implemented in phases, employed Kenyans are set to receive less pay at the end of this month after the government increased the monthly NSSF contributions from Ksh2,160 to Ksh4,320.
