The new agitation by the Kenya Kwanza
government to raise NSSF contributions is very suspicious and calls for deep
scrutiny. It is impossible to think of an organisation that is run in a worse
way than NSSF. Over the years, the institution has become a veritable looting
machine. The corporate governance in this organisation is worse than that of a
roadside kiosk. Its CEO position has been an ever-turning revolving door. Board
wrangles have been going on for years.
Being one of the most liquid organisations in
the country, it has always been a darling for looters. It has forever been in
the eye of the corruption storm.
The audited accounts for the year ended 30th
June 2022 received a qualified opinion. The audited accounts make for depressing
reading. The firm had KShs 223 million deposited in Chase and Imperial banks
which have since gone under, and only KShs 103 million has been recovered so
far. NSSF had also invested KShs 667 million in Chase Bank and Imperial Bank
bond, an amount which cannot now be recovered.
The company let out Hazina Towers in 2010 for ten years. The tenant
defaulted and was evicted in 2019. The subtenants removed furniture and
fittings leaving the building in a rundown condition. With
respect to Hazina Trade Centre (where Nakumatt Lifestyle once stood), it was
found out that NSSF did not receive value for money for KShs 654 million paid
to the contractor as idling fees when construction stalled. The firm had
operating costs of KShs 5.4 Billion with staff costs at KShs 3.8 Billion as at
30th June 2020. Why such high staff costs? It spent KShs 140 million
on security services tenders. In the 2018/19 financial year, NSSF paid its
members an interest of 3% down from 12.5% in the 2013/14 financial year. This
is a joke. You are better off eating your money than investing it with NSSF at
3% interest. With inflation at over 8%, you are getting a negative return.
Why is Ruto starting a campaign to deduct more
money from workers as NSSF contributions before all these issues are addressed?
What does this clamour have to do with the ongoing economic crisis
facing the country? Is this even an urgent issue? You don't need to be a genius
to tell what is cooking. The lamb is being fattened for slaughter.
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