Tax Alert

Updates on the NSSF after the Supreme Court Ruling

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What Next after the Supreme Court Decision on The NSSF Act?

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The Supreme Court of Kenya recently overturned the Court of Appeal’s decision, which had previously declared the NSSF Act 2013 constitutional.

In a case involving the Kenya Tea Growers Association and others, the Supreme Court ruled that the Employment and Labour Relations Court (ELRC) has jurisdiction to assess the constitutionality of statutes related to employment and labor.

The case has been sent back to the Court of Appeal for further consideration based on the ELRC’s judgment.

This begs the question: 
► Is the NSSF Act 2013 unconstitutional as it was determined by Employment and Labour Relations Court? 
► What is the current law on the enhanced NSSF Tier II deductions, as the enhanced deductions are premised on the constitutionality of the NSSF Act 2013? 
► Should employers continue deducting the enhanced NSSF Tier II deductions?
► What will happen if the court of appeal after determination of the ELRC judgement agrees with ELRC that the NSSF Act is unconstitutional? Will the deductions be refunded?


This alert addresses the above questions. Click on the button below to download.