NAIROBI, Kenya, Sept 25 – Deputy President William Ruto has laid down the law to the management of the National Social Security Fund (NSSF) warning that individuals who mismanage the funds will be dealt with ruthlessly.,
Speaking during the unveiling of the Fund’s 2014- 2019 strategic plan, Ruto said the time for corruption dealings at NSSF was over and urged the trustees to make sure that all the public funds will be used with the highest standards of integrity.
“I want to tell the board and management of NSSF that we are watching, any corruption issues involving any individuals will be dealt with ruthlessly; time for corruption at the fund is over,” he said.
He also urged other stakeholders not to be a stumbling block towards development by derailing the needed changes at the NSSF.
“I want to encourage all the stakeholders that instead of standing in the way of the transformation that will help NSSF take root and provide us with the necessary resources to finance development let us find a mechanism that creates synergy and understanding so that we can succeed,” he said.
Ruto also urged Kenyans to develop a saving culture that will help in raising resources for the country’s development instead of borrowing from other countries.
He said Kenya was still lagging behind in saving for retirement compared to other countries in the region.
“Under the new NSSF Act 2013 we are saving at 12 percent, Tanzania is at 20 percent, Uganda at 15 percent, Rwanda at 15 percent and Burundi at 18 percent,” he said.
In the new roadmap NSSF plans to grow its value four – fold form the current Sh150 billion to Sh526 billion within five years.
The fund is also seeking to grow its membership from the current 1.5 million to 5.4 million in the same period, gradually cut costs from the current 3.8 percent of total asset value to less than two percent in order to deliver better returns to members.
The Fund currently offers members 12.5 percent returns up from 2.5 percent a few years ago.
According to the Chairman of the NSSF Board of Trustees Adan Mohamed, the new Strategic Plan is anchored on the new Constitution, the Vision 2030 and the NSSF Act 2013, and will guide the Fund’s alignment with the new operating environment.
“The Strategic Plan we are launching today underlines a transformative agenda that will ensure the Fund maintains its leadership position by becoming a high performing, competitive social security scheme,” said Mohamed during the launch event attended by various stakeholders.
On his part NSSF Managing Trustee Richard Langat says the Fund will over the next five years focus on growing annual member contributions from the projected Ksh22 billion in 2015 to Ksh118 billion in 2019.
“One of our main priorities is retaining and growing our membership by driving enhanced awareness among Kenyans of not only what we are offering as a Fund but also the importance of social security generally,” said Langat.