6 hours Ago By Standard Business
The National Social Security Fund (NSSF)Friday, kicked off its 60th anniversary celebrations with its Annual General Meeting as it eyes growing to a Sh1 trillion fund by 2027. NSSF was established in 1965 through an Act of Parliament, Cap 258 of the Laws of Kenya, and over the years evolved from being operated as a Department within the Labour Ministry to a provident fund and later transformed into a mandatory pension scheme through the NSSF Act 2013. It is currently implementing its 2023-2027 strategic plan, in which it plans to grow to a Sh1 trillion fund from a fund value of Sh500 billion as of June 2024.
At the AGM in Nairobi, NSSF Board of Trustees Chairman David Njeru said the fund had become a pillar of national development and a beacon of social protection in Kenya since 1965. “The Fund has come a long way from a state department within the parent ministry to a semi-autonomous state corporation and the leading retirement benefits scheme advancing financial security for millions of Kenyan workers,” said Mr Njeru. “Across six decades of economic and policy transitions, NSSF has shown an enduring ability to adapt — recalibrating its mandate to be in harmony with the national aspirations of the people, the global development agenda and, most importantly, the changing needs of Kenyan workers.
” Contributions to the NSSF more than doubled in the financial year to June 2024 following the implementation of new rates. Member contributions rose to Sh62 billion over the year from Sh26.867 billion in the period to June 2023.
Monthly contributions for salaried Kenyans increased in February 2023 to Sh1,080 per month from Sh200, which is then matched by the employer to reach Sh2,160 in the first phase of implementing the NSSF 2013 Act. Contributions further went up to Sh2,160 in February 2024 in the second phase of implementation and have gone up again this February to Sh4,320. The Act had been contested over its constitutionality, and cases dragged on in court for about a decade, but the Court of Appeal in January 2023 ruled that the Act is constitutional, setting the stage for higher contributions.
“As the biggest retirement benefits scheme in Kenya, we want to assure you that we will remain steadfast in upholding member-centricity, integrity, innovation and collaboration to remain on an upward trend and to serve the purpose for which we exist. Additionally, we have embarked on a transformational journey in which we are taking in stride,” said NSSF Managing Trustee David Koross. At the same time, NSSF said it paid retirees Sh9.
71 billion over the year to June 2024, which was a 46 per cent increase compared to the previous year..
