National Social Security Fund (NSSF) was established in 1965 by an Act of Parliament i.e. CAP 258 Laws of Kenya. First contributions (from men only) were received in July 1966. Female employees first registered in January 1975 but started contributing in 1977.
Njeru Githae, Minister of Finance said that for NSSF to improve its performance it should consider investing in diplomatic and embassies residences in a foreign countries and enlist services of the KRA by collecting funds. But it should reduce its portfolio in Kenya.
On the first annual general meeting of the NSSF which was held at the Moi International Conference Centre, Kasarani, Nairobi, the Minister represented President Kibaki, who was supposed to be the chief guest.
He told the NSSF management to look for other investments like treasury bills, equities and infrastructure bonds. Mr.Githae urged them to look at the accounts and what went wrong. NSSF moved from an investment company to a land buying company.
President Kibaki’s speech which was read by Mr.Githae said that NSSF had contributed to development of the country through investing KSh28 billion in treasury bonds and infrastructure bonds mainly in the energy sector.
He told the fund to partner with power producers to generate more power for the country.The fund should roll out in development of housing especially the Vision 2030 project which will see 30,000 units constructed at the Mavoko municipality. “The stakeholders should support a Bill that intends to transform NSSF from a provident fund to a pension fund,” he said.
Mr. Adan Mohamed, NSSF-Chairman handed over his account balance sheet with the fund of KSh79,347 to Mr.Githae. Each member contribute KSh200 regardless of salary level. The Fund has indicated the contributions will go up by 12 percent of one’s salary (6 percent paid by the employer and the other by the employee).