Politics and policy
MPs Thursday evening voted 73-63 in favour of the amendment that went
before the House as it debated the Finance Bill. PHOTO | FILE
By George Ngigi
In Summary
Parliament Thursday moved to shield Kenyan workers
from possible loss of retirement savings to arbitrary decisions made by
the National Social Security Fund (NSSF) directors in the absence of
their representatives.
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The National Assembly passed an amendment to the National
Social Security Fund Act that if signed into law will bar the fund’s
board from meeting without the workers’ and employers’ representatives.
The amendment, which was initiated by Homa Bay
women representative Gladys Wanga, provides that the NSSF will not have a
quorum in the absence of trustees representing the two parties.
The workers are represented in the NSSF board by a
nominee of the Central Organisation of Trade Unions and the employers by
the executive director of their lobby — the Federation of Kenya
Employers (FKE).
MPs Thursday evening voted 73-63 in favour of the amendment that went before the House as it debated the Finance Bill.
The amendment effectively weakens Labour minister
Kazungu Kambi’s grip on the provident fund whose management was thrown
into disarray early this year with the ouster of Cotu secretary-general
Francis Atwoli and FKE director Jacqueline Mugo from the board of
trustees.
Mr Kazungu fired the duo through a gazette notice,
quoting an amendment to the NSSF that limits the terms of directors to
three years.
Ms Wanga told Parliament that it was important that
Cotu and the FKE be present whenever the business on members’ funds is
conducted.
“This is basically to create balance, to ensure
that NSSF moves forward in the manner that is anticipated, to secure
funds that have been contributed by workers and employers,” she said.
Ms Wanga said that the impending increase in the
amount of money the NSSF will handle required tighter controls for
prudent management.
But Kipipiri MP Samuel Gichigi opposed the
amendment, arguing that the House rules did not allow changes to be made
to the NSSF Act through the Finance Bill.
“The Finance Bill has the intention of introducing
measures of raising revenues. The intention of this amendment is
something that is completely different from issue of taxation,” Mr
Gichigi said.
Mr Kazungu said that, among other reasons, he had sacked Mr Atwoli and Ms Mugo for missing board meetings.
The minister claimed that Mr Atwoli had missed nine consecutive meetings and that the two had sat on the NSSF board for too longThe minister fell out with the duo after they questioned the NSSF’s plan
to spend billions of shilling to build roads in Nairobi’s Tassia
estate.
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