NSSF in deal with Helb to track loan defaulters

Graduands at a past graduation ceremony. Helb has mounted a campaign lately to boost its collection from graduates. FILE 

By  George Omondi
 

 

In Summary

• NSSF has signed a partnership agreement with Helb to share information to ease tracing of loan defaulters.
• Helb has mounted a campaign lately to boost its collection from graduates, but some 75,500 beneficiaries have defaulted on paying Sh8.5 billion.
• About 98,194 beneficiaries are currently servicing their loans amounting to Sh13.6 billion, a performance rate of 62pc.

Local statutory agencies are pushing for the establishment of a centralised registration database for Kenyans to ease tracing of clients.

Through a smart card, a centralised database will automatically display full identity details of citizens including PIN, national identity, passport, driving licence, birth certificate, hospital card, social security card, mobile phone and educational institutions attended.

“With a detailed database being compiled by the National Registration Bureau it will be easier to use smart cards to get all the information that we need to undertake our mandates,” National Social Security Fund (NSSF) managing trustee Tom Odongo says.

In the absence of a centralised database, NSSF and other agencies such as National Hospital Insurance Fund (NHIF), Kenya Revenue Authority, and Higher Education Loans Board (Helb) have to share data to track down people.

Mr Odongo on Friday signed a partnership agreement with Helb’s CEO Charles Ringera to share information but warned that such deals would not achieve much.

“We can’t tell who among our members are graduates that Helb is looking for but NSSF will be able to report where particular people are currently working,” said Mr Odongo.

Helb has mounted a campaign lately to boost its collection from graduates, but some 75,500 or 20 per cent of the 375,000 beneficiaries have defaulted on paying Sh8.5 billion, Mr Ringera said.

About 98,194 beneficiaries are currently servicing their loans amounting to Sh13.6 billion, a performance rate of 62 per cent.

(Read: State suppliers set to obtain clearance from Helb)

The loans board has already put employers on notice by threatening legal redress for late remittance of cash deducted from former university students by firms.

“We hope to reach as many past graduates as possible, including those currently outside the country because our ability to educate depends on how much of the past loans we collect,” Mr Ringera said.

For NSSF which has set itself a target of registering two million new members by end of June, agreements with the custodian of important personal registration data such as one reached with Helb on Friday, have ignited fresh hopes for growth.

The Fund currently has only 1.5 million active accounts against a national workforce estimated at 12 million people.

Mr Odongo has lately turned his attention to the household where he expects to net about three million domestic workers to fill up the fund’s membership list.

He has given employers of house helps up to the end of this month to register workers voluntary before the NSSF’s compliance officers begin door-to –door campaigns from June.

Failure to make the contribution exposes an employer of a house help to a fine of not more than Sh15,000 while late remittance (after 30 days from deduction date) will attract interest charge of five per cent per month on outstanding amounts.

“We do not intend to rely on police because we have enough compliance officers and prosecutors that we have trained to handle these cases,” said Mr Odongo.