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{
    "id": 1350320,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1350320/?format=api",
    "text_counter": 80,
    "type": "speech",
    "speaker_name": "Lari, UDA",
    "speaker_title": "Hon. Kahangara Mburu",
    "speaker": null,
    "content": " Hon. Deputy Speaker, pursuant to Standing Order 44(2)(c), I wish to request for a Statement from the Chairperson of the Departmental Committee on Social Protection regarding the administration and management of the National Social Security Fund (NSSF). Section 20 of the NSSF Act, 2013 provides for mandatory contributions to the Fund at 6 per cent for the employer and a 6 per cent contribution deducted from the employee’s earnings. Implementation of the said Act commenced in February 2023 following conclusion of a court dispute. It is estimated that the Fund had grown by 63.8 per cent by the end of June 2023. The informal sector also contributes to the Fund through the Haba Haba Programme. However, over the years, the Fund has been characterised by inefficiencies occasioned by claims of financial mismanagement, alleged corruption, inordinate delays in processing of pensions, leadership wrangles and lack of public trust and confidence. This has led to concerns amongst Kenyans on the risk of financial mismanagement. Hon. Deputy Speaker, the said Act further provides for a full opt-out at Tier II level of contributions for employees contributing to pension schemes approved and registered by the Retired Benefits Authority. However, there have been concerns on the risk of financial mismanagement for contributions above the lower earning limits. Additionally, there have been allegations that the funds have previously been invested in non-viable fixed assets, including apartments, which may lead to loss of contributions of innocent Kenyans. It is against this background that I seek a Statement from the Chairperson of the Departmental Committee on Social Protection on the following: 1. Could the Chairperson provide information to the House on the measures put in place by the Board of Trustees of the said Fund to ensure effective management of the Funds? 2. What mechanisms has the Board of Trustees put in place to ensure public participation and involvement of stakeholders in the decision-making process? 3. What administrative structures has the Board of Trustees put in place to guarantee no conflict of interest in the management of the said Fund? 4. What is the current financial statement and economic viability of the Fund’s investments in fixed assets including buildings and land? I thank you, Hon. Deputy Speaker."
}