NSSF Surpasses Kes.41 Bn Target, Pledges 24-Hour Payment Turnaround

July 4, 2024

The Managing Trustee of the National Social Security Fund (NSSF), David Koross, has assured retirees that they will soon receive their claims within 24 hours as the fund digitizes its systems.

NSSF is leveraging technology to streamline claims payments and eliminate long-standing bureaucratic hurdles that retirees have faced for years.

Koross also announced that the fund has exceeded its target for the financial year 2023-2024, reporting a total of Kes.43 billion raised by March 31st, surpassing the Kes.41 billion target.

The processing time for payments has been reduced significantly from an average of 18 days to a range of 10 to 14 days. In the last quarter alone, NSSF disbursed over Kes.2.6 billion across more than 38,000 claims.

“NSSF is no longer the institution which used not to pay. We have now cleared all backlogs on all pending claims, and we are dealing with current claims,” said Koross, adding that they will ensure an efficient turnaround in the payment of claims.

He went on, “In the near future, we want to ensure that we pay claims within 24 hours. We are digitising and automating our processes such that Kenyans should be able to get their claims while they are at their own comfort; they don’t have to walk to NSSF.”

Koross spoke during the 20th symposium for the Kenya Association of Hotelkeepers and Caterers in Kwale.

12% Increase in NSSF Contributions

“We are increasing contributions to 12% of the salary for retirement savings,” Koross stated, pointing out challenges like unremitted contributions, especially from county governments who owe the fund Kes.5 billion.

He also revealed that 83% of Kenyans lack formal pensions, with only 6% of retirees over 60 receiving pensions.

NSSF said it aims to expand its reach to encourage more people to save for retirement.

Koross highlighted the significance of the new NSSF Act, 2013, whose implementation began in 2023 following legal challenges, to extend coverage and enhance retirement benefits.

“Previously, we have only asked people to save about Sh400 per month, and when people retire, you retire to about Sh120, 000 – 150,000.We would want to move to a situation where, at least when people retire, you get a basic income replacement of at least 30 per cent for what you were earning,” he explained.

NSSF has expanded its savings initiatives to include the informal sector with the introduction of a product called Haba Haba. Under this scheme, individuals can save Kes.25 per day, amounting to Kes.750 per month.

“It is generally accepted that if you save 20 per cent of what you are earning per annum for a period of 20-30 years, you’ll get a retirement savings of up to 60 per cent of your earnings when you retire. That is where we want people to go,” explained the managing trustee.

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