The National Social Security Fund (NSSF) is under fire after an audit showed it spent Ksh 317 million on meetings and travel, costs that its leaders couldn’t clearly explain.
On May 21, the Public Investments Committee summoned NSSF top officials who were unable to respond to a series of audit queries flagged by the Auditor-General on the Fund’s financial operations for the years 2021/2022 to 2023/2024.
A particularly glaring irregularity involved a hotel that received Ksh. 3.3 million against a Local Purchase Order of just Kshs. 1 million, raising red flags over an unexplained overpayment of Ksh. 2.3 million.
Additionally, Ksh.11.3 million was spent on conference facilities procured through unregistered suppliers, in direct contravention of public procurement laws.
“Don’t struggle to justify mistakes. If it’s a mistake, just call it out,” said Joshua Kimilu during the session of the Public Investments Committee on Social Services, Administration, and Agriculture (PIC-SSAA).
NSSF Admitting on Spending
NSSF management admitted to lapses in procurement and spending, but insisted corrective measures were already in place.
“The extra expenditure was due to an unplanned day of preparation. However, retrospective approval was sought and granted,” said CEO David Koros.
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However, MPs were far from satisfied with Fatuma Jehow raised concerns over how the fund evaluates returns on investments, particularly regarding Treasury bonds.
“Are contributors really getting value for their money?” she asked.
Koros assured the committee that the Fund’s investment strategy remains solid. “We continuously invest the money and assure the Committee that the funds are safe.”
Budgeting & Expenditure
The audit covered the 2021/2022 to 2023/2024 financial years and showed questionable expenditures,
A broader management concern was such as a Ksh. 26.3 billion revenue overperformance that lacked prior budgeting, and a dismal 5% utilization of a Ksh. 4.06 billion development budgets.
“The reason why we have a budget in organisations is to ensure we don’t miss the target,” said Martin Peters Owino. “Overshooting without justification indicates poor planning.”
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Koros attributed the revenue surge to higher contributions following the onboarding of public servants under the new NSSF Act, and strong returns from equity and interest markets.
Additional Audit Queries Flagged
The committee also spotlighted a Ksh.940 million tax receivables, most of which is owed by the Kenya Revenue Authority and dates back nearly three decades despite a 2016 High Court ruling ordering repayment.
Another unresolved issue involved a Ksh.115 million land purchase in Upper Hill. The parcel was later repossessed and reallocated to the Judiciary after it was revealed to have been public land.
“How was the title cancelled without proper investigations beforehand?” asked Bishop Kosgei, with Vice-Chair Caleb Amisi echoing concerns overdue diligence.
The case is currently pending in court, with a hearing slated for June 11, 2025.
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