Cabinet approves Bill to convert NSSF into pension scheme

Workers erect a new logo on the National Social Security Fund headquarters in Nairobi. SALATON NJAU 

By Mugambi Mutegi

In Summary

• According to a statement sent last evening from state House, the revamp of Jomo Kenyatta International Airport (JKIA) received a shot in the arm after the Cabinet allowed the Kenya Airports Authority to borrow Sh7.9 billion ($93 million) from the European Investment Bank to fund the expansion.
• Delays in securing financing for the project has caused concern that a temporary terminal would have to be built to manage the ever-increasing passenger numbers.
• The approval comes as construction of the controversial $653 million (Sh56 billion) Greenfields terminal came back to the limelight last week after KAA said it would finalise financing deals by Christmas.

Cabinet has approved the National Social Security Bill (NSSF) 2012 which will convert the institution from a provident fund into a public social security scheme.

The Bill proposes to among other things have workers contribute a bigger portion of their salaries to NSSF, allow transfer of benefits between East Africa Community member countries and also, for the first time, recruit the unemployed to become members.

NSSF has over the past months engaged and won the support of key stakeholders such as the Federation of Kenya Employers (FKE) and the Central Organisation of Trade Unions (Cotu) as it pushes to have the Bill approved.

According to a statement sent last evening from state House, the revamp of Jomo Kenyatta International Airport (JKIA) received a shot in the arm after the Cabinet allowed the Kenya Airports Authority to borrow Sh7.9 billion ($93 million) from the European Investment Bank to fund the expansion.

Delays in securing financing for the project has caused concern that a temporary terminal would have to be built to manage the ever-increasing passenger numbers.

The approval comes as construction of the controversial $653 million (Sh56 billion) Greenfields terminal came back to the limelight last week after KAA said it would finalise financing deals by Christmas.

“This (the funding) will enable JKIA to remain competitive and an international aviation hub,” the Cabinet’s brief further noted. KAA is building a Sh9.4 billion) terminal 4 which is 56 per cent complete and due for commissioning in August 2013.