NSSF defied Covid-19 to register impressive growth
The National Social Security Fund (NSSF) has achieved a net growth of 72 per cent translated from an increase of Sh165.5 billion in June 2015 to Sh285 billion in June 2021 giving it a 12 per cent growth per year in the last six years.
This has been achieved despite harsh economic conditions, a case court that stalled the full implementation of the NSSF Act 2013 and the outbreak of the Covid-19.
Media reports claiming that the Fund spends Sh64 for every Sh100 collected is incorrect.
NSSF’s expenses are based on and compared with the income generated and not members’ contributions.
The NSSF Act 2013 allowed the Fund to spend 2 per cent of net assets and not total members’ contributions.
The Fund has managed to spend 2.45 per cent of its net assets despite the court case which has restrained the Fund from collecting the enhanced contributions envisaged in the same Act that places the 2 per cent expenditure limit.
Guided by the Retirement Benefits Authority regulations, NSSF currently invests in government securities worth Sh154 billion, Sh28 billion in Safaricom and Sh27 billion tier 1 and 2 banks.
NSSF is a landlord to more than 50 government Ministries, Departments and Agencies.
The Fund is a major supporter of this economy going by its strategic investments spread across all sectors.
Reported losses by NSSF at the Nairobi Securities Exchange in some entities has been “paper loss” which happens to all investors in stocks depending on economic performance.
Investment decisions of the Fund are made by top managers as guided by the RBA Regulations.
Living by the spirit of “mobilizing local resources for national development” all NSSF members should be proud that through the Fund, they have been able to live to our National Anthem ‘Pamoja tujenge Nchi yetu’.
The Fund ensures openness, accountability and transparency to its stakeholders by ensuring the Auditor General audits its accounts and the Fund is also required by law to annually publish its accounts in the Kenya Gazette and in the local dailies.
NSSF is one of the public entities that is required by law to publish its accounts. That should give confidence to members and Kenyans in general.
Members are at liberty at all times to check the status of their contributions at their convenience by using USSD code *303#.
Members can also register and check their statements from the comfort of their phones using the same USSD code.
The Fund’s services can easily be accessed at any of our 49 branches and all Huduma Centres.
Members can also log-in to the NSSF online self-service (eservice.nssfkenya.co.ke) to access all their desired services.
On the recovery of member contribution arrears and penalties, the Fund has ensured that all outstanding contribution debts are followed up through formal demands as per the Fund Compliance Process.
Additional effort and strategy has been deployed to recover contribution arrears and penalties owed by employers.
This include installment undertaking arrangements, filing of court cases through the Office of Director of Public Prosecutions and engagement with government institutions to recover contribution arrears and penalties owed by defunct local authorities.
Government institutions steering the debt recovery process include the Ministry of Labour and Social Protection, the Council of Governors, and the Intergovernmental Relations Technical Committee.
The unremitted member contribution by some employers is actually not unaccounted for money by NSSF as implied in the Auditor General’s report.
These are known monies in form of member contributions owed to the collector (NSSF) and are being pursued vigorously by the Fund to be credited to member-accounts.
The penalties that come with such owed monies cater for the cost of collection of the contributions by the Fund and delayed interest on member accounts deriving from the missed investment opportunity.
NSSF has also opened its door to Kenyans in the informal sector. The launch of the Habahaba informal sector savings programme in 2019 demonstrates that the informal sector is the biggest creator of jobs and shouldn’t be left behind especially in the critical endeavour like saving. The Fund has come up with products targeted at this critical sector.
All employers who engage at least one worker are also required to register themselves and their employees with NSSF. — The writer is the PR & Communications Manager, NSSF—Kenya