By Wainaina Ndung’u
Contributors to the National Social Security Fund ( NSSF) may soon have a say in the appointment of trustees.
This follows NSSF’s proposal that contributors should have a say in the appointment of Board of Trustees – through an election at an annual general meeting (AGM) to be held yearly.
Contributors attending the AGM will be able to approve proposed trustees representing trade unions, employers (under the Federation of Kenya Employers umbrella), Government, small and medium enterprises, and the Jua Kali sector.
NSSF Acting Managing Trustee Tom Odongo said in Nanyuki on Monday evening that the Fund had proposed the first AGM to be held in August. There will, however, be no elections during the first AGM because the Cabinet is yet to approve the NSSF Transformation Bill.
“The Transformation Bill is ready to be taken to the Cabinet for approval and we expect it would be approved Parliament by the end of August. We expect that the Attorney General to publish it by early September,” said Odongo.
“We see the President assenting to it by the time Parliament is dissolved.”
Among the raft of changes proposed in the new Bill is change of name to The National Social Security Pension Trust. This will transform NSSF from a provident fund to a national pension fund.
“With the pension fund, we will be able to pay contributors a premium at the end of their working life, and monthly payments for the rest of their lives,” said Odongo.
Odongo said he was satisfied the new Act will adequately address governance, compliance, investment, and member welfare issues. Among them is the Sh200 ceiling of member contributions that was placed when the NSSF was founded.
New products
Odongo said the NSSF would also be able to engage new products including a loan scheme.
