NSSF to pay former boss as parties agree on out of court settlement, certificate issue

A suit by former National Social Security Fund (NSSF) boss Tom Odongo challenging his dismissal will now be settled out of court.

This follows a consent agreement signed by Odongo, and the Labour Cabinet Secretary and the NSSF Trustee to have the case filed last year concluded out of court.

Under the consent filed at the Industrial Court, the NSSF will pay Mr Odongo a nine-month salary as the final settlement of the matter. He will also be issued with a certificate of service.

The consent signed by lawyers Fred Ngatia for Mr Odongo and George Oraro for the NSSF indicated that the former chief executive will have no other claim to make against the NSSF

Odongo was dismissed by Labour Cabinet Secretary Kazungu Kambi in July last year. He filed the suit at the Industrial Court in Nairobi asking the court to suspend the decision to terminate his contract until his case is determined. He argues that the termination was unlawful because Mr Kambi made the decision without a recommendation from the Board of Trustees of the state-run pension institution.

He claimed the Cabinet secretary did not follow the procedure for termination of employment under the Employment Act, 2007.

He named Kambi and the NSSF Board of Trustees as respondents. Odongo was appointed as the Managing Trustee of NSSF on November 28, 2012, for a term of three years. The judge certified the case urgent.

Odongo and the Cabinet secretary agreed that he would hand over all the properties of the National Social Security Fund before being cleared. The court ordered each party to pay their own costs of the case.