NSSF gears up for high impact investments

National Social Security Fund chairman Adan Mohamed (left) chats with Finance minister Robinson Githae during the inaugural NSSF annual general meeting at the Moi International Sports Centre Kasarani last year. NSSF has announced plans to engage in strategic investments that guarantee high returns as part of its corporate transformation strategies. File 

In Summary

• NSSF has expressed an interest to fund high impact projects such as the construction of a tunnel or suspended bridge along the Likoni Channel or Kenya's second superhighway.

Kenya's pension fund, the National Social Security Fund (NSSF) has announced plans to engage in strategic investments that guarantee high returns as part of its corporate transformation strategies.

The fund will focus on high impact investments that guarantee a high return in the energy, and infrastructural development sectors.

"At NSSF, we have made a deliberate policy decision to invest in infrastructural projects with a high impact and guarantee high value returns on our investments as well as boosting social development," NSSF Board of Trustees Chairman, Adan Mohamed told journalists on Monday during a ceremony to celebrate NSSF's recent ISO 9001:2008 certification.

He said the fund has expressed an interest to fund the construction of a tunnel or suspended bridge along the Likoni Channel or Kenya's second superhighway.

"The venture will also be an answer to the occasional disasters whereby vehicles have been plunging into the sea or people drowning in the ocean as they attempt to board the ferries," he said.

About 300,000 people and 5,000 vehicles are transported across the channel between the island and South Coast daily, including trailers from neighbouring Tanzania and beyond.

There have been several accidents and close calls that have proved that using ferries to link the island to the South Coast, which is a major tourist haven with its white sandy beaches and international class hotels, is hampered by the inefficient ferries.

Within the broad energy development sector, Mohamed said NSSF would seek to invest in energy production and transmission.

This, he said, is part of the fund's policy to diversify its investments beyond the Equities and Property development portfolio.

The fund is now gearing up to act as a key player in the local Public Private Partnerships (PPP's) project financing scene, in tandem with its membership growth projected to hit the 4.2 million mark in the next two years.

Mohamed confirmed that NSSF had activated a new 3.5 million U.S. dollars SAP Enterprise Resource Planning (ERP) solution to facilitate efficient, real time service delivery across its core business functions.

"NSSF is firmly positioned on a transformation path and the ISO certification confirms our corporate adherence to global quality management standards including a commitment to pay members benefits within seven or less days once they fall due," Mohamed said. (xinhua)