NSSF's plan to pay pension dues in a day signals relief for retirees

NSSF Board of Trustees Chairman David Kariuki Njeru, CEO/Managing Trustee David Koross and other Trustees, commemorate 60 years of innovation, inclusion, and sustainable growth during the 7th Annual General Meeting at the Safari Park Hotel, Nairobi, on April 25, 2025. [Courtesy]

The National Social Security Fund (NSSF) has revealed its plan to pay claims within 24 hours, placing its bet on technology, an agile workforce and cleaning up its records.

NSSF chief executive and Managing Trustee David Koros said this has already been done, citing a point in time in March when the fund paid seven claims at its Hill Branch in 24 hours.

The waiting time for one to receive their claims stood at 82 days in June 2023.

This has been slashed to less than two weeks, the CEO said. "We are now doing an average of nine days," said Mr Koros during NSSF's 7th Annual General Meeting.

He said the target, as per the fund's strategic plan, is to have claimants paid their dues in one day by the 2027/2028 financial year.

"We have been able to pay benefits in one day. For instance, last month (March), we reported to work on a Monday, picked up whatever claims that had come to our Hill Branch, and by 3pm we had paid seven of them. That tells you it is possible to pay benefits in one day," he said.

"We are giving ourselves a target of 24 hours. You launch your claim on Monday, and by Tuesday 4pm, the money is in your account. That is our commitment to you."

In the last two years, NSSF says it paid benefits to more than 200,000 retirees. In the year ended June 2024, Sh9.71 billion was paid as benefits, an increase of 46 per cent.

First payslip

How soon one can receive their dues from the fund has been a pain point for retirees, an issue that has roped in the Commission for Administrative Justice (CAJ) who in February issued a statement on the same.

The CAJ, in its February 13, 2025, statement, noted that retirees are being asked to produce documents such as a first payslip, which is impossible for some, as such could date back more than two decades.

"How are they expected to have such documents?" posed Charles Dulo, the commission's chair, after an impromptu visit to NSSF's Bima House.

Mr Koros, aware of these challenges, noted that one of the ways they seek to ensure benefits are paid on time is by adopting new technology, utilising their newly recruited 400 youthful workforce and digitising their records.

This will involve using the latest technology and deploying automation. "We will bring in a new system that will enable us to process benefits with efficiency," he said.

He said NSSF will also embark on data cleaning, noting that at times during the processing of benefits, gaps in remittances from employers are noted.

"NSSF has been known to have gaps in contributions. We will pursue those employers who have not given those contributions, such that at the end, when you are retiring, we have the data and information relating to you and we are ready to pay when you come calling," he said.

Mr Koros said the fund has beefed up its compliance department for this purpose from 80 to the current 300 officers who will also be tasked with recruiting new employers.

The target is by the next financial year, NSSF will have 120,000 employers from the current 80,000.

This will also see one million new members, with 500,000 already recruited.

The push for claims to be paid in 24 hours was echoed by Labour and Social Protection Cabinet Secretary Alfred Mutua and Principal Secretary State Department for Labour and Skills Development Shadrack Mwadime.

"We need to be very good to our customers. I will work with you so that we cut it down (payment period), and we will have a big announcement," said CS Mutua.