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National Social Security Fund (Kenya)

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Industry
  
Social Security

Website
  
Homepage

Founded
  
1965

Products
  
Pension fund

Headquarters
  
Nairobi, Kenya

Type of business
  
Quasi-Government

National Social Security Fund (Kenya) httpssoftkenyacomkenyawpcontentuploads201

Key people
  
Adan D. MohamedChairmanRichard LangatActing Managing TrusteeFrancis AtwoliTrustee

Revenue
  
KSH 20.8 Billion (2010)

Total assets
  
KSH 100.7 Billion (2010)

The National Social Security Fund (NSSF) is a government agency responsible for the collection, safekeeping, responsible investment and distribution of retirement funds of employees in both the formal and informal sectors of the Kenyan Economy. Participation for both employers and employees is compulsory. NSSF is both a Pension fund and Provident fund.

Contents

History

NSSF was established in 1965 through an Act of Parliament Cap 258 of the Laws of Kenya. It initially operated as a Department of the Ministry of Labour until 1987 when the NSSF Act was amended transforming the Fund into a State Corporation under the Management of a Board of Trustees. Under the National Social Security Act of 2013, both employed and the self-employed and their dependants qualify as contributing members. The act (law) on pension requires all Kenyans that are above 18yrs of age to register to the program.

The Board of Trustees is composed of workers' representatives through the Central Organization of Trade Unions, Employers' through the Federation of Kenya Employers and the Government of Kenya through the Ministries of Labour and Finance. This composition ensures that the Board of Trustees accommodate the views and aspirations of the three social partners in policy formulation and running of the organization.

Investment Portfolio

The current National Social Security Fund investment portfolio include Fixed Income, Real Estate and Equities.

Fixed Income

This include Short term and Long term bonds. As at 31 December 2010, the investment in Long term bonds was KSH 24.64 Billion.

Real Estate

  • Land - As at 31 December 2010, the undeveloped land owned by NSSF was valued at KSH 7.86 Billion.
  • Buildings - As at 31 December 2010, the Buildings owned by NSSF were valued at KSH 31 Billion.
  • Commercial Buildings - These include NSSF Building, View park Towers and Hazina Trade Centre which is set to be the tallest building in the region.
  • Residential Buildings - These include Nyayo Estate Embakasi, Milimani Flats, Mountain View Estate, Hazina Estate and Nyayo Highrise Estate near Kibera.

    • Equities

  • Private Equities - The main private equity held by NSSF is 11.2% of the issues share capital of the Consolidated Bank of Kenya. Others include the Nairobi City Council Stock.
  • Listed Equities - The Fund is a leading investor on the Nairobi Securities Exchange. Companies invested in by NSSF in the NSE include the following:

    • Ownership

    The NSSF is owned by the Government of Kenya on behalf of the workers and employers in Kenya.

    Governance

    Governance of NSSF is overseen by a nine-member board of trustees with Adan D. Mohamed as the Chairman and Richard Langat as the acting Managing Trustee. In formulating the Fund’s policies the Board of Trustees act strictly in accordance with the NSSF Act.

    Branch Network

    There are NSSF offices in major towns all over Kenya.

    References

    National Social Security Fund (Kenya) Wikipedia
    (Text) CC BY-SA


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