NAIROBI, Kenya, Feb 9 – The Auditor General has faulted the National Social Security Fund (NSSF) over overpayments and poor management of the stalled Nyayo Estate Phase VI housing project, which was expected to be completed 12 years ago.
In the audit report, NSSF is shown to have recorded receivables and prepayments amounting to Sh10.2 billion, including advances and deposits of Sh290 million paid to suppliers. Of this amount, Sh215.8 million was paid to a contractor for the Nyayo Estate Phase VI project.
The project involved the construction of 324 housing units at Nyayo Embakasi and was scheduled to run between June 2, 2013 and November 30, 2014, at a total cost of Sh2.1 billion.
However, the project stalled, with NSSF management citing lack of approvals from the Nairobi County Government. The Auditor General noted that no evidence was provided to support this explanation.
“As at the time of the audit in October 2025, only 44 housing units had been constructed,” the report states.
The Auditor General further revealed that although works were certified at Sh274.7 million, the contractor had already been paid Sh227.9 million, in addition to a mobilisation fee of Sh215.5 million. This resulted in an overpayment of Sh168.8 million.
Project management told auditors that it had requested a refund of the overpaid amount, but no refund had been made by October 2025. The Auditor General said this explanation “appears doubtful”.
The report adds that the circumstances surrounding the stalled project point to possible contravention of the law by NSSF management.
