Seek KRA to boost funds collection, NSSF told

 

Finance minister Njeru Githae at the National Social Security Fund's inaugural annual general meeting on September 17, 2012. Photo/DIANA NGILA  NATION MEDIA GROUP

By MWANIKI WAHOME jwahome@ke.nationmedia.com

In Summary

• NSSF asked to reduce on its property portfolio in the country
• NSSF management asked to opt for other investment vehicles like treasury bills, infrastructure bonds and equities

The National Social Security Fund (NSSF) should consider investing in embassies and ambassadorial residences in foreign countries and enlist the services of the Kenya Revenue Authority (KRA) to collect funds to improve its performance.

Finance minister Njeru Githae, however, said the Fund should reduce its property portfolio in Kenya.

“Look at foreign missions and identify those that you can buy. You will already have the first tenant. We are paying too much in rent in foreign missions and residences,” he said.

He said Tanzania had taken similar steps to reduce the amount of money it pays as rent in selected countries.

Annual meeting

Mr Githae was speaking during the first annual general meeting of the National Social Security Fund at Moi International Conference Centre, Kasarani. He represented President Kibaki, who was to be the chief guest.

The minister told the NSSF management to look for other investment vehicles like treasury bills, infrastructure bonds and equities.

“When you look at the accounts you know what went wrong with NSSF. It moved from an investment company to a land-buying company. You should dispose off the plots you have and avoid buying new ones,” he said.

He said that during the Budget speech in June, he directed various corporations to rationalise activities such as revenue collection to avoid duplication and cut on costs.

President Kibaki, in the speech read on his behalf, said NSSF had contributed to development of the country through investing Sh28 billion in treasury bonds and infrastructure bonds last year, particularly in energy sector.

He added that it should partner with power producers to generate more power for the country.

He acknowledged the Funds role in development of housing, particularly a Vision 2030 project that will see 30,000 units constructed at Mavoko municipality.

He told stakeholders to support a Bill that intends to transform NSSF from a provident fund to a pension fund.

The Funds chairman, Mr Adan Mohamed handed Mr Githae his account balance sheet with the Fund, of Sh79,347.

“We need to review the rates, this is too low... after working for 15 years,” he said.

NSSF has already indicated that the contributions will be increased to 12 per cent of one’s salary, six per cent paid by the employer and the other by the worker.

Currently, each member contributes Sh200, regardless of salary level.