The National Social Security Fund (NSSF) has come under intense scrutiny following a damning report by Auditor General Nancy Gathungu that reveals deep-rooted financial mismanagement, wasteful spending, and questionable investments that have potentially cost the fund billions of shillings.
The audit, which covers operations up to June 2024, paints a troubling picture of an institution entrusted with safeguarding Kenyans’ retirement savings but plagued by irregularities. Among the most outrageous findings is the procurement of a reception desk at a staggering Sh2.08 million, raising questions about inflated procurement practices.
Equally disturbing is the revelation that NSSF incurred a loss in a Sh12 billion bond trade. The fund reportedly purchased bonds at a premium and later sold them at a significant loss, without prudent analysis of capital losses versus yield rates. Non-performing investments also featured prominently in the report, including Sh127 million in underperforming equities and a Sh209 million loss at a local bank.
Auditors flagged Sh3.2 million in fuel procurement done in cash, bypassing public procurement laws, and exposed Sh410 million in opaque renovation works. A suspicious land deal in Upper Hill worth Sh115 million now rendered worthless after the revocation of its title deed further highlighted the fund’s questionable asset management.
Idle properties in Nairobi valued at Sh4 billion and a Sh228 million investment in Kisumu operating irregularly underscore poor strategic planning. The audit also revealed the trustees held far more board and committee meetings than allowed, racking up Sh68.7 million in emoluments.
Additional red flags included Sh317.6 million spent on travel and conferences, unrecovered staff loans totalling Sh1.3 billion, and pending bills of Sh8.9 million. The fund also lost Sh940.3 million in tax refunds and reported Sh946.6 million as doubtful income.
Despite targeting a 15 per cent return on investment, the NSSF achieved only eight per cent—raising serious concerns about the fund’s effectiveness and leadership. As the magnitude of financial lapses emerges, contributors and oversight bodies are calling for urgent reforms to protect retirement savings and restore accountability within the NSSF.
