National Social Security Fund of Kenya: An Assessment from Islamic Jurisprudence

The social security fund operated as a community collective system prior to the colonial period. The colonial government proposed establishing a provident fund for African workers. They noted that the pension scheme was not favorable because it required the investment of significant resources and subsidies by the government. Following independence, the Kenyan government announced the implementation of social security for its people. The National Social Security Fund (NSSF) was established by an Act of parliament Cap 258 in November 1965, however, contributions began in July 1966 to allow it to operate as the National Provident Fund. Since her independence Kenya has undergone several pension reforms, culminating in the enactment of the NSSF Act in 2013. The pension scheme has received significant attention from the Muslim clerics. Some fatawa have been issued stating that the retirement benefits are not Sharī‘ah compliant. This situation might jeopardize the retirement goal and put the retirees in financial difficulty by denying them their benefits. The main objective of this study is to evaluate the conformity of Sharī‘ah in Kenya’s pension fund operation. Inductive method was used to examine the operational methods of the social security fund from both the perspectives of pension scheme and Islamic jurisprudence in order to mutually integrate them. Likewise, the researchers used the analytical approach to clarify the opinions of the Muslim scholars regarding the pension scheme products and to highlight some areas of inconsistency with Islamic law in order to provide Islamic alternatives. The results showed that pension scheme funds are inconsistent with Islamic law. Therefore, it is recommended for NSSF to open Islamic windows to meet the demands of the Muslim workers seeking Sharī‘ah  compliant products / services.