Auditor General Nancy Gathungu has flagged financial improprieties at the National Social Security Fund (NSSF). Auditor General Nancy Gathungu speaking at a past event. According to Gathungu’s report on NSSF for the financial year ended June 30, 2024, the retirement scheme incurred a loss of over KSh 16 billion. The report attributed the loss to ghost taxes, bad investments, idle assets, costly travel, and pricey renovations How NSSF lost KSh 16b Gathungu revealed that over KSh 904 million in taxes was wrongly paid to the Kenya Revenue Authority (KRA), with no refund or interest earned.
“The NSSF management did not provide for audit review evidence of progress made in the refund of the overpaid taxes,” read the report in part. The scheme also spent KSh 115 million to buy land in Upper Hill, Nairobi, whose title deed was later revoked since it was public land. Despite a case filed challenging the revocation of the title, Gathungu issued a modified opinion in respect to the matter. The fund was also found to have five idle and unused properties in Nairobi Central Business District (CBD) valued at KSh 4 billion. NSSF investment losses NSSF also invested in two companies whose value dropped by 17.6%, costing members over KSh 27 billion. The report further indicated that NSSF invested KSh 38 million stuck in a loss-making bank’s shares.
The scheme also spent KSh 12 billion on government premium bonds, which were later sold at a KSh 272 million loss. How NSSF lost funds via expenditure NSSF Managing Trustee David Koros speaking at a past event. Photo: NSSF. Source: Twitter The report further showed that NSSF spent KSh 317 million for travel, meetings and conferences, with KSh 11 million spent on conferences alone. The fund used KSh 51 million on vehicle operations, including KSh 3.2 million on fuel. NSSF budgeted KSh 411 million for renovations, where KSh 14 million was spent via questionable procurement. The scheme spent KSh 36 million on property, plant and equipment, with KSh 2.1 million used to buy a single reception desk. NSSF used KSh 69 million to pay trustees’ emoluments, out of KSh 6.9 billion spent on administrative costs, during the same period under review.
By Wycliffe Musalia
