How NSSF Lost KSh 15.6 Billion in Unpaid Contributions And Disputed Assets
The National Social Security Fund (NSSF) has been exposed of at least KSh 15.6 billion in unresolved financial claims according to the pension firm’s internal disclosures. The latest financial report by the National Social Security Fund (NSSF) for the financial year ending June 2024 has exposed significant financial misappropriation at the institution.
According to excerpts from the Office of the Auditor General on NSSF’s financial status, the institution failed to demonstrate progress in recovering Ksh.904,336,114 in taxes that were mistakenly paid to the Kenya Revenue Authority. These funds were meant to be refunded after the fund gained tax-exempt status — a delay that potentially cost retirees interest earnings had the money been invested.
Additionally, the report reveals that NSSF purchased a parcel of land in Nairobi’s Upper Hill for Ksh.115 million, but the title deed was revoked in April 2010 after it was determined that the land had been set aside for public use.
According to excerpts from the Office of the Auditor General on NSSF’s financial status, the institution failed to demonstrate progress in recovering Ksh.904,336,114 in taxes that were mistakenly paid to the Kenya Revenue Authority. These funds were meant to be refunded after the fund gained tax-exempt status — a delay that potentially cost retirees interest earnings had the money been invested.
Additionally, the report reveals that NSSF purchased a parcel of land in Nairobi’s Upper Hill for Ksh.115 million, but the title deed was revoked in April 2010 after it was determined that the land had been set aside for public use.
The Auditor General noted that the value for money from the two companies could not be confirmed
A similar situation is reflected in NSSF’s investment in a loss-making bank, where it holds shares valued at Ksh.38,428,500. This is further compounded by the fund’s investment in government securities, where it spent Ksh.12 billion to purchase bonds — including a Ksh.500,711,695 premium — without providing a satisfactory explanation.
The audit reveals that these bonds were acquired at a premium and later sold at a loss, resulting in a capital loss of Ksh.272,045,067 during the review period.
Additionally, KSh 7.24 million was lost through fraud at the Fund’s Westlands branch and is the subject of a court case. Several contingent liabilities are also pending; including a KSh 7.06 billion claim filed by Mugoya Construction Company Ltd against the Fund relating to Nyayo Estate projects, KSh 460.2 million claim lodged by Centurion Engineers for delayed payments under a refurbishment contract, and KSh 37.6 million claim by House of Leather, a former tenant at Hazina Trade Centre, for alleged loss of business following.
The Fund is also facing a KSh 50.1 million compensation claim from Keiyo Teachers Sacco over land in Eldoret that overlapped with property held by Kenya Prisons. The High Court ruled in the Sacco’s favor in 2020 but negotiations toward an out-of-court settlement are ongoing.
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