President William Ruto has defended the increase in National Social Security Fund (NSSF) contributions, saying the government’s push to boost national savings is aimed at reducing Kenya’s reliance on external borrowing and strengthening the country’s ability to fund development projects using local resources.
Speaking at State House, Nairobi, on Saturday, May 16, 2026, during a meeting with religious leaders from Bungoma County, Ruto said Kenya has for years depended on foreign loans due to low national savings, a situation he said must change for the country to achieve long-term economic stability.
He defended the move from the earlier monthly contribution of Sh200 to the current six per cent salary deduction, saying the reforms are already reflected in the rapid growth of the NSSF fund.
According to the president, NSSF savings have grown from about Sh312 billion in 2023 to around Sh700 billion by February this year, with projections showing the fund could reach Sh1 trillion in the near future.
“In two years, ile pesa tumesanya in 60 years, we have doubled. Saa hizi, katika hazina yetu ya NSSF, by February this year, tulikuwa na Sh700 billion. 2023 tulikuwa na Sh312 billion. By next year, tutakuwa na Sh1 trillion,” Ruto said.
“Sasa mnieleze, in five years? In 10 years? In 20 years? Hatutakuwa tunaenda China tena kukopa pesa ya mtu. Tutakuwa tunapanga hapa mambo yetu na pesa yetu.”
Ruto said Kenya’s low savings rate has been a major reason for continued borrowing from external lenders, adding that such loans come with interest obligations that strain public finances.
“The reason why tunaenda kukopa huko China ni kwa sababu savings as a percentage of GDP is low. We must stop, tujenge hazina yetu as Kenya,” he said.
The president said increasing domestic savings would allow the country to plan and finance development projects independently, reducing dependence on external creditors.
He urged Kenyans to embrace a stronger savings culture, saying it is key to long-term economic transformation and stability.
Ruto also responded to criticism over the increased deductions, saying he remains committed to the reforms despite public debate over their impact on workers’ take-home pay.
“Hatutakuwa tunaenda China tena kukopa pesa ya mtu. Tutakuwa tunapanga hapa mambo yetu na pesa yetu,” he said, adding: “Even if people call me Zakayo, I want us to build our country using our own resources.”
The remarks come amid ongoing debate over higher NSSF contributions, with critics arguing that the deductions have reduced disposable income for workers. However, the government maintains that the reforms are necessary to strengthen domestic investment and reduce reliance on foreign debt.