The National Social Security Fund (NSSF) is under intense scrutiny after an auditor-general’s report exposed glaring mismanagement of member contributions.
At the center of the storm is Ksh4.02 billion in idle prime properties within Nairobi’s central business district, left undeveloped for years and with disputed ownership. Further revelations show Ksh163 million in lost member records and Ksh81.9 million in unaccounted suspense accounts.
The Consumers Federation of Kenya (COFEK) has demanded urgent interventions, warning that millions of Kenyans’ retirement savings are at serious risk.
NSSF Properties Left to Rot While Members Lose Trust
The Auditor-General’s report for the period ending June 30, 2025, paints a troubling picture of NSSF’s asset management. Several prime properties in Nairobi remain undeveloped despite being worth Ksh4.02 billion. Worse, NSSF cannot confirm legal ownership of some assets, leaving them vulnerable to seizure or fraudulent claims.
Housing projects have also stalled. The Nyayo Embakasi Estate Phase Four, valued at Ksh2.15 billion, has lingered incomplete for over a decade. Yet, NSSF continues to commit funds to new developments, including Ksh1.4 billion for Machakos and Kisumu projects and plans to borrow Ksh1.6 billion for a Kisumu housing scheme. Critics argue that pouring money into new projects while older ones remain unfinished reflects weak planning and governance.
Lost Member Records Put Retirements at Risk
The audit revealed Ksh163 million in lost member records, which include contributions of retirees that cannot be traced. Additionally, Ksh81.9 million sits in suspense accounts with unclear ownership. COFEK warns that these lapses not only violate fiduciary responsibilities but also put the financial security of ordinary Kenyans in jeopardy.
COFEK has urged NSSF to digitize and securely manage all member records. “The retirement security of millions is at stake. This is not just about money; it’s about trust and accountability,” said a COFEK spokesperson.
Irregular Allowances Signal Weak Oversight
The Auditor-General also flagged irregular allowances totaling Ksh21.2 million. These include payments to employees serving in acting roles for over six months without Board approval and officers on special duty without proper authorization. Such breaches of public service regulations suggest systemic weaknesses in internal controls.
“These are not minor oversights. Acting allowances without authorization indicate a board and management failing to enforce governance standards,” COFEK noted.
Call for Forensic Audit and Parliamentary Oversight
In response to these findings, COFEK has called for a full forensic audit of NSSF. The federation argues that the scale of questionable land holdings, stalled projects, and lost records warrants more than a financial audit. They also demand accountability from the NSSF Board and urge the Public Investments Committee (PIC) to summon management for explanations on long-standing audit queries.
“We are demanding a forensic audit: Given the scale of questionable land purchases and lost records, a full forensic investigation is warranted, not just a financial audit,” COFEK stated. “Without urgent intervention, billions in member savings remain exposed to incompetence, weak oversight, and potentially outright malfeasance.”
NSSF Yet to Respond to Escalating Concerns
Despite the damning findings, NSSF has not publicly addressed the new concerns over asset and fund management. CEO David Korros, who launched the Corporate Strategic Plan 2023-2027 last year, has remained largely silent on the latest audit revelations.
COFEK warns that without swift action, the retirement security of millions of Kenyans is in peril. The federation’s demands are clear: develop idle properties, secure member records, implement strong internal controls, and provide transparent accountability. Failure to act risks not only public confidence but the financial futures of countless contributors nationwide.
The Ksh4.02B mismanaged NSSF funds scandal underscores a critical need for oversight and reform. With billions of shillings in question and vital housing projects stalled, Kenya’s premier social security institution faces a test of integrity that cannot be ignored.
