Wamuzi News Ke
A major shift is looming in Kenya’s employment landscape after the government revealed plans to criminalise employers who fail to remit statutory deductions taken from workers’ salaries.
The proposed law targets companies and individuals who deduct funds such as PAYE, NSSF, NHIF, and other mandatory contributions but fail to forward them to the relevant state agencies.The move comes amid rising concerns that thousands of workers continue to lose their pension benefits, health coverage, and social protection due to employers withholding deductions for months or even years.
Some employees only discover the truth when seeking medical attention or while following up on retirement benefits, sparking widespread calls for tougher action.According to officials pushing for the reform, the new proposal seeks to treat non-remittance as a criminal offence rather than an administrative violation.
Employers found guilty could face prosecution, heavy financial penalties, or jail terms depending on the scale of default. The government argues that the current system has allowed too many organisations to escape accountability while workers bear the consequences.
Labour groups have welcomed the proposal, saying it will help protect employees from financial exploitation. They insist that many employers have used economic hardship as an excuse while continuing to make deductions that never reach state funds.
Workers also fear that the continued gaps in remittances threaten the sustainability of vital programmes meant to secure their long-term welfare.However, some business lobbies warn that criminalising non-remittance could create new risks, especially for small and medium enterprises struggling with cash flow.
They argue that punitive laws may worsen the business environment if not implemented with clear guidelines, reasonable timelines, and mechanisms for dispute resolution.Despite the mixed reaction, pressure is mounting for Parliament to fast-track the proposal.
The government insists that protecting workers’ money is a priority and that employers must take full responsibility once they make deductions.If adopted, the law could trigger one of the strictest enforcement regimes in Kenya’s labour history.
Employers will be required to maintain up-to-date records, meet remittance deadlines without fail, and justify any delay with formal proof. Authorities are also expected to intensify audits to identify chronic defaulters.
For now, employees across the country are watching closely. The outcome of the proposed law will determine whether long-standing abuses in statutory deductions finally come to an end or whether the debate over enforcement will continue.
