The newly increased National Social Security Fund (NSSF) deductions has been received with mixed reaction from netizens.

City Lawyer John Maina Ndegwa has filed a case at the Milimani Law Courts to challenge it before it takes effect February 2024.

The lawyer explained in court papers that the economic outcome of the said implementation will impact negatively on the economy of Kenya.

The petition that was filed on Monday January 15 at the High Court, sought to have the case certified as urgent.

“I Maina Ndegwa do certify the application attached and filed herewith to be of uttermost urgency requiring to be placed before the Judge on a priority basis for the reason that the third respondent (NSSF Board) has placed notices in newspapers having wide circulations on January 12, compelling all employers to implement the Year 2 Contribution Rates 2024,” the petition read in part.

READ ALSO: Government increases NSSF charges starting February

“The said proposed deduction from the employees are coming at a time when Kenyans are inebriated with the high cost of living with a shrinking pay slip because of a depressed economy,” read part of the petition.

In his petition, Ndegwa argued that the 2 year contribution rates for 2024 were extremely high and unreasonable.

He further told the court that salaried Kenyans were already burdened by other deductions.

The revised rates show an increase in the lower earnings limit, from the current Ksh6,000 to Ksh7,000.

How long will the new rates be effective?

These rates will be effective until the next review in January 2025. The recently implemented deduction plan, initiated last year, will raise rates over a period of five years.

READ ALSO: We created millions of jobs for Kenyans in 2023, says President Ruto

Upper Earnings Limit will be Ksh.29,000 from the current Ksh.18,000, meaning that most workers will contribute Ksh.1,740 up from Ksh.1,080.