Radical changes are looming at the troubled National Social Security Fund (NSSF), targeting the top management and corrupt officials.
The charges are targeting NSSF board chairman Gen(Rtd) Dr. Julius Karangi. He was given the job by former President Uhuru Kenyatta as the board of trustees chair among other soldiers were absorbed in lucrative state jobs.
NSSF CEO Dr. Anthony Omerikwa who was appointed in 2019 has served for three years and should be constitutionally out of the office by now.
Omerikwa was controversially handed the job by former Labour CS Ukur Yatani after serving in an acting capacity for 56 months, way beyond the average CEO’s term of three years. His appointment breached the State rule that limits temporary occupation of executive positions to a maximum of six months.
Other high ranking officials (trustees) who are in panic mode include Dr. Anne Owuor, Mark Obuya, Peter Mweleli and Prof. Dulacha Galgallo.
The NSSF management has been rocked with betrayals and a majority are under investigations after an audit exposed multiple uncounted earnings and looting of millions while President William Ruto is pushing Kenyans to increase contributions to NSSF.
Auditor-General Nancy Gathungu has found that NSSF managers are hiding investment revenue amounting to Sh16.6 million from corporate bonds of a company listed on the Nairobi Securities Exchange.
The Sh16.6 million was not entered in NSSF’s cashbook.
President Ruto informed Kenyans that he will increase monthly NSSF contributions tenfold, claiming that the current Sh200 monthly contribution to the fund is too low.
He said that his government must review the monthly contribution and adjust it to match it with people’s earnings but not set a standard fee.
Ruto said his mission is to make NSSF a better savings plan. He argued that he inherited an ailing economy and therefore it was time for the country to act smart and have better saving plans to remain top in international lending.
“We cannot continue to borrow from the savings of others. We need to build our country with our own savings. Let us borrow from our own savings so that we can give interest to our own lenders,’’ Ruto said.
Kenya is currently has a debt of Sh8.4 trillion after Parliament pushed up the debt ceiling to Sh10 trillion.
“We need to leave an inheritance to our children, not debt and encourage a savings culture. That is the only way we can stop being slaves of our lenders. We should aim to start lending to others,’’ he said.
But the president was dealt a blow after the High Court imposed an order stopping his bid to increase the monthly contributions.
The court said that the new proposal was not subjected to public participation so it lacks community input as required by the Law.
Through the NSSF Act 2013, Ruto wants to push monthly contributions by employees from the current Sh200 monthly as demands employers match the payout.
