Taxman starts collecting NSSF cash this month

CBK Governor Njuguna Ndung’u (right) and David Ferrand, director Financial Sector Deepening Trust (FSD), during the launch of the FinAccess 2013 Report at the Serena Hotel in Nairobi October 31, 2013. Photo/Salaton Njau  Nation Media Group

By DAVID HERBLING

In Summary

• The partnership will pave the way for cost cutting measures at NSSF including layoffs and closure of offices, saving the fund millions of shillings.

The taxman will November start collecting the National Security Social Fund (NSSF) contributions, setting the stage for cost-cutting at the worker’s pension fund.

Kenya Revenue Authority will start with a selected number of employers.

The pact failed to take off last month due to a computer hitch after it emerged that NSSF systems do not use Personal Identification Number (PIN) — which forms a key plank of the taxman’s network.

READ: Computer hitch hits taxman’s bid to collect NSSF remittances

“To ensure smooth implementation of the partnership, registration of employers on the NSSF electronic platform will be done in phases,” the two State agencies said in a notice Thursday.

The partnership will pave the way for cost cutting measures at NSSF including layoffs and closure of offices, saving the fund millions of shillings.

The NSSF had about 1,700 staff in December while administrative costs in the year to June 2011 stood at Sh5.2 billion compared to Sh6.8 billion remitted by workers in the same period.

KRA is expected to earn a commission of between 1.5 and 2 per cent of the collections.