, NAIROBI, Kenya, Feb 24 – The National Social Security Fund (NSSF) has announced plans to engage in strategic investments that guarantee high returns as part of its corporate transformation strategy.
NSSF Board of Trustees Chairman Adan Mohamed explained that the fund is now gearing up to act as a key player in the local Public Private Partnerships (PPP’s) project financing scene, in tandem with its membership growth, which is projected to hit the 4.2 million mark in the next two years.
Speaking during a ceremony to celebrate NSSF’s recent ISO 9001:2008 Quality Management System certification by the Kenya Bureau of Standards (KEBS), Mohamed explained that the fund will focus on high impact investments that guarantee a high return in the energy, and infrastructural development sectors.
He added that this is part of the fund’s policy to diversify its investments beyond the equities and property development portfolio.
Ahead of the fund’s ISO certification, Mohamed confirmed that NSSF had activated a new Sh300 million SAP Enterprise Resource Planning (ERP) solution to facilitate efficient, real time service delivery across its core business functions.
“At NSSF, we have made a deliberate policy decision to invest in infrastructural projects with a high impact and guarantee high value returns on our investments as well as boosting social development,” he said.
“Within the broad energy development sector we’ll seek to invest in energy production and transmission,” he added.
He revealed that NSSF has expressed an interest to fund high impact projects such as the construction of a tunnel or suspended bridge along the Likoni Channel or Kenya’s second superhighway.
On the property development front, Mohamed singled out the fund’s proposed Hazina Village Development within Mavoko Municipality as one of NSSF’s proposed high impact projects to be developed at the fund’s 1,000 acre property in Mavoko, Machakos County.
The ambitious Hazina Village Mixed Development project valued at Sh87.6 billion will feature a city within a city model incorporating more than 30,000 housing units and allied amenities including a light rail network.
“The necessary project designs and evaluations have been undertaken and we expect to conduct the ground breaking ceremony for the Mavoko project before the end of the year,” he explained.
“NSSF is firmly positioned on a transformation path and the ISO certification confirms our corporate adherence to global quality management standards including a commitment to pay members benefits within seven or less days once they fall due,” he added.
Beyond the Mavoko project, Mohamed also disclosed plans for the fund to enter into the Meetings, Incentives, Conventions and Exhibitions (MICE) tourism segment by building an international convention centre at the fund’s undeveloped plot on Kenyatta Avenue opposite Nyayo House.
The convention centre will be developed alongside a high-end luxury hotel property incorporating rental apartments at the prime city plot.