NSSF Kenya To Start Paying Benefits In One Day

In a move that might transform Kenya’s retirement and pension field and catapult it to the next level, the National Social Security Fund (NSSF) has announced that it plans to pay members benefits in one day and not on different dates.

Speaking while hosting news editors under the Kenya Editors Guide, NSSF CEO Mr. Tito David Koros said the Fund was committed to ensuring that member satisfaction is at the center of every operation that it undertakes going forward.

Capitalizing on technology, the CEO said that the Fund will make the process of paying benefits to members fast and seamless with no delays as it was before. He said NSSF has enhanced its service delivery calling on Kenyans to take advantage of the enhanced rates and save.

Mr. Koros said he is in the process of putting in place systems that will transform NSSF by restructuring its investment portfolio in line with the requirements of the Retirement Benefits Authority (RBA) to secure and ensure that members’ contributions earn the much-needed value.

Read Also: The Importance Of Retirement Savings And Utilizing The NSSF In Kenya

The announcement came even at the time NSSF nearly tripled its monthly collections with the enforcement of the new law that has enhanced contributions by workers and employers. NSSF now collects approximately 4 billion shillings every month from its registered members, up from the 1.3 billion shillings previously.

This translates to a projected 48 billion shillings annually, meaning the new NSSF Act is set to unlock an additional 30 billion shillings to the social security fund.

Read More:

• Supreme Court Declines Stopping Enhanced NSSF Contributions
• Meet David Koros, The Man To Drive NSSF Into The Future Of A Prosperous Kenya

The social security contributions in respect of an employee increased from a flat rate of KES 200 per month to a total contribution of 12% of Pensionable Earnings distributed evenly between employer and employee (6% by employers and 6% by employees).

The Act defines pensionable earnings as all remuneration owed to an employee that is not subject to fluctuation and is the lower of the member’s monthly pay subject to a cap known as the Upper Earnings Limit.

Read Also: The National Social Security Fund (NSSF) Act No. 45 of 2013: The Explainer