At a high-stakes media briefing, NSSF Managing Trustee David Koross directly addressed concerns around the reported KSh 26 billion shortfall, the ambitious digitization rollout, and the Fund’s evolving investment strategy in infrastructure. His disclosures spotlighted both defensive clarity and proactive planning as he charted a course toward improved member returns and sustainability.
Koross began by contesting the oft-quoted KSh 26 billion figure, linking it to a petition rather than audit evidence. Instead, he drew attention to the Auditor-General’s FY 2024 report—flagging KSh 16–17 billion in recoverable or mismanaged expenditures, land transactions, bonds, shares, taxes, and property anomalies . He emphasized that while these are real issues, attributing all to loss is misleading. Crucially, NSSF secured an unqualified audit opinion—its first—signaling financial robustness in accounting practices .
On the KSh 16 billion flagged, Koross addressed each category methodically: the KSh 904 million in tax refunds to KRA, the now-invalid Upper Hill land deal (KSh 115 million), capital losses from bond premiums (KSh 272 million), divestments in underperforming equities (KSh 27 million), and bank shares (KSh 38 million) . He explained these are being actively recovered or written off with due financial reconciliation, and not indicative of systemic misappropriation.
Pivoting to digitization, Koross underscored that over 400 ICT specialists have been hired, legacy systems are being replaced, and data cleanup is ongoing to reconcile over KSh 942 million in suspense contribution accounts . He confidently asserted that this overhaul is critical to speeding up reconciliation processes and ensuring every member’s contributions are accurately recorded—a necessary foundation for equitable dividends.
Highlighting operational progress, he noted an impressive drop in claim processing times—from 86 days to under 10—enabled by digitization. He insisted that the Fund’s systems are now capable of real-time verification, streamlining payouts, and reducing human error—adding that final rollout across all branches is on track .
Turning to diversification, Koross detailed NSSF’s embrace of infrastructure investments—a strategic pivot away from low-yield bonds and idle urban properties toward actively managed assets, including highways and trade structures. These, he argued, will generate more stable and superior long-term yields for members, helping shield the Fund from interest rate shifts and underused real estate .
He described infrastructure as the next frontier for pension funds globally, citing its resilience and inflation-linkage. NSSF’s board has just ratified a framework focused on public-private partnerships, complete with due diligence protocols, the recruitment of experienced asset managers, and performance indicators tied to member returns and risk mitigation.
To ensure accountability, Koross reaffirmed readiness for forensic audit by EACC or other trusted entities. He argued that reframing legitimate investment decisions or recovery efforts as malfeasance is unhelpful. His message was resolute: transparency is not optional—it’s integral to confidence-building.
In closing, Koross urged members to look at the data: unqualified audit, dramatically improved processes, active recovery of flagged sums, and a bold diversification strategy — all coalescing to position NSSF for stronger returns and operational reliability. His tone was not defensive, but assertive—a pension fund recalibrating in real time.
While questions around execution and oversight persist, Koross’s clarifications yesterday illustrate a Fund that is no longer reactive but reimagining its mandate. With digitization underpinning infrastructure foray, NSSF appears to be pivoting from crisis management to value creation. Members and stakeholders, it seems, have reason to monitor—and cautiously support—this evolution.
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