Atwoli: NSSF Public Confidence Warning Over Unsubstantiated Claims

• Francis Atwoli, COTU Secretary General, challenged Members of Parliament over unsubstantiated claims of misconduct at the National Social Security Fund.
• Atwoli insisted that allegations of NSSF officers demanding cash from retirees must be supported by evidence and identified contributors.
• He highlighted NSSF's improved financial performance, with its portfolio growing from KSh312 billion to KSh814 billion in three years, and two consecutive clean audit opinions.
• COTU urged NSSF management and its Board of Trustees to resist political interference, particularly as the 2027 General Election approaches.
• Atwoli called on MPs to promote the "Haba na Haba" savings product to encourage retirement savings among informal economy workers.

Parliament has a responsibility to scrutinise public institutions but legislators should be cautious against making sweeping accusations that could undermine public confidence in the fund and discourage workers and employers from making contributions.

The Secretary General of the Central Organisation of Trade Unions (COTU), Francis Atwoli, recently confronted certain Members of Parliament regarding their assertions of impropriety within the National Social Security Fund (NSSF). These claims emerged during parliamentary discussions concerning the Public Service Superannuation Scheme (Amendment) Bill in the Committee of the Whole House. Atwoli characterized these statements as unfounded attacks on the institution.

Specifically, Atwoli refuted allegations that NSSF officials demand cash payments from retirees. He emphasized the necessity for such claims to be substantiated with concrete evidence, urging those making the accusations to identify the affected contributors. He highlighted that COTU, which holds two positions on the NSSF Board of Trustees, has not received any complaints from its 47 affiliated trade unions or individual contributing members concerning the alleged denial of benefits.

Atwoli underscored that it is unacceptable for political figures to make broad accusations about NSSF officers demanding money from retirees without presenting proof, naming the individuals impacted, or initiating proper accountability procedures. He affirmed Parliament's role in scrutinizing public bodies but cautioned lawmakers against issuing sweeping statements that could erode public trust in the fund and deter both employees and employers from making their essential contributions.

In his defense of the National Social Security Fund, Francis Atwoli detailed significant operational improvements and robust financial growth. He pointed out that the NSSF now operates 64 branches across Kenya, enabling members to file claims and seek assistance locally, thereby eliminating the need to travel solely to the Nairobi headquarters. This expansion has contributed to a dramatic reduction in the average benefits processing period, which has decreased from approximately 87 days to just seven days, with COTU advocating for a further reduction to a single day.

Financially, the NSSF has demonstrated substantial expansion, with its investment portfolio growing from an estimated KSh312 billion to KSh814 billion over the past three years. This trajectory positions the fund to potentially achieve a valuation of one trillion shillings. Furthermore, Atwoli cited that the Office of the Auditor-General has issued clean audit opinions for the NSSF for two consecutive years, signaling enhanced financial reporting standards and institutional accountability.

Atwoli's remarks also carried a strong warning against actions that could jeopardize public confidence in the National Social Security Fund. He stressed that while parliamentary oversight of public institutions is crucial, legislators must refrain from making generalized accusations that could undermine the fund's credibility and discourage vital contributions from workers and employers. Such actions, he argued, could have detrimental long-term effects on the nation's social security framework.

Looking ahead, Atwoli cautioned both the management and the Board of Trustees of the NSSF against succumbing to political interference, especially as the 2027 General Election approaches. He suggested that the fund's increasing financial strength might attract attempts to influence its management and investment decisions. In this context, he also urged Members of Parliament to actively promote the "Haba na Haba" savings product, which is designed to bring workers in the informal economy into formal pension arrangements, thereby encouraging broader participation in retirement savings rather than discouraging it through negative rhetoric.

Lawyers advising employers on NSSF contributions or employees on benefits should monitor the ongoing political scrutiny and governance challenges highlighted by COTU's defense, as these could impact the fund's stability and public perception, particularly with the 2027 elections approaching. Compliance officers should note the emphasis on evidence-based claims regarding institutional misconduct.

Source: Original reporting via news reports