Nairobi News


How Sh16.6 million disappeared in the hands of NSSF managers

It remains unclear how managers of the National Social Security Fund (NSSF) managed to conceal investment revenue amounting to Sh16.6 million from corporate bonds of a company listed on the Nairobi Securities Exchange.

The managers are also in the spotlight after an audit revealed multiple uncounted earnings and payments totaling hundreds of millions of shillings.

The is according to the Auditor-General Nancy Gathungu, who has said the NSSF managers did not record the amount in the funds cashbook.

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“The statement of changes in net assets available for benefits reflects investment income totaling Sh21.63 billion which includes interest on corporate bonds totaling Sh124.73 million. However, Sh16.62 million earned from corporate bonds of a listed company were not recorded in the cashbook. No explanation was provided for the omission,” said Gathungu.

“In this circumstance, the investment income balance totaling Sh21.63 billion included in the investment income balance for the year ended June 30, 2021, could not be confirmed,” Ms Gathungu added.

The audit also flagged anomalies with the NSSF’s bank overdraft which showed an overdrawn cash book balance amounting to Sh206.9million although this was not updated in the cashbook nor balanced against other entries.

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This came a few days after President William Ruto announced his plans to increase contributions to NSSF.

During the joint parliament sitting on September,29, President Ruto announced that he will match one shilling for every two shillings a Kenyan saved through the National Social Security Fund as he aims to have a better savings plan for Kenyans.

“We intend to overhaul our social security infrastructure to make it more inclusive. To encourage those excluded to save, I will be proposing a national savings drive. For every Sh 2 saved in the scheme upto a maximum of Sh 6,000 a year, the government will contribute Sh 1,” the president said.

On January 29, a former NSSF manager and three other employees were found guilty of Sh1.4 billion fraud.

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