Retired Kenyans Fail To Claim Over KSh 173m From NSSF, Auditor General Report

• Auditor General Nancy Gathungu said the National Social Security Fund (NSSF) did not remit unclaimed assets for the period ending June 2022
• According to the report, over KSh 173 million retirees' benefits from the scheme were unclaimed
• New NSS Chief Executive Officer (CEO) Tito David Koross said he will transform the fund to pay benefits within a day

More than KSh 173.8 million in unclaimed benefits from the National Social Security Fund (NSSF) are under the spotlight.

The auditor general report pointed out that NSSF failed to remit the funds belonging to retired Kenyans to the Unclaimed Financial Assets Authority (UFAA).

NSSF unclaimed benefits

Nancy Gathungu said that the $1.2 million (KSh 173.82 million) due by the end of June 2022 was part of the accrued payment of $24.9 million (KSh 3.6 billion) NSSF paid retirees during the same period.

“The statement of net assets available for benefits reflects payables and accruals balance of Ksh3.6 billion. The balance includes returned benefits of $1.15 billion (KSh 166.6 billion) for unclaimed member benefits that have been outstanding for a long period of time and were not submitted to the Ufaa,” said Gathungu, as quoted by the EastAfrican.

This came even as a report released in 2018 showed that the public agencies and private firms failed to remit over KSh 246.2 billion unclaimed assets to UFFA.

NSSF CEO David Koross promises transformation

In August 2023, NSSF pledged to improve its remittance services and clear all member benefits within a day.

NSSF CEO Tito David Koross reiterated his commitment to streamline financial efficiency, Customer satisfaction and Fund growth to spur economic development through enhanced member savings.

"We will transform NSSF as an institution in totality, restructuring its investment portfolio in line with the Retirement Benefits Authority (RBA)," said Koross.

The audit report reiterated that all unclaimed assets should be remitted per sections 20 and 22 of the UFFA Act 2011.

“This was contrary to Section 20 (1) and 22 of the Ufaa Act of 2011 that requires a person holding assets presumed abandoned and subject to the custody of the authority as unclaimed assets under this Act should make a report and at the time of filing the report pay or deliver to or hold to the order of the authority all abandoned assets.”

NSSF rates increased

The audit report followed NSSF Act of 2013 implementations that saw an increase in monthly contribution from KSh 400 to KSh 2,000.

President William Ruto's administration picked up the law in its proposals to increase the national savings basket.

A three-judge bench dismissed the act, saying it was invalid since it did not follow constitutional procedure.

The Court of Appeal upheld the new law after Ruto's administration challenged the earlier ruling.