Pensions

Our Investments

At National Social Security Fund, we are committed to the highest standards of corporate governance and business ethics. Recognizing that good corporate governance is key to the enhancement of our business performance, the Board of Trustee’s seek to discharge their duties and responsibilities in the best interest of the Fund, its shareholders, customers, business partners and the wider community.

Our corporate values and ethics are entrenched in our strategic and business objectives and are focused on transforming and accelerating growth in value for the benefit of all our stakeholders.

During the financial year 2012-2013, the fund returned a net increase in Scheme Funds of Kes.26.5 billion mainly due to changes in market value of investments. This is a higher return compared to the financial year 2011 – 2012 of Kes.1.9 billion. This is attributed to increased investments in equities, corporate bonds and treasury bonds at the Nairobi Security Exchange (NSE). As a result, the fund’s Net Assets increased to Kes.134.9 billion compared to Kes.110.5 billion the previous financial year, a 22.11% growth

 Tuskys suspends 70 Beba Beba employees in goods theft scam

The theft was only detected at Tusky’s Beba Beba branch. PHOTO | FILE 

By SIMON CIURI, Sciuri@ke.nationmedia.com

In Summary

• The 70 employees are accused of working with an external cartel that was allegedly clearing goods from the store and later selling them to retail shops in Nairobi and its environs.
• Tuskys has also called in detectives from the Directorate of Criminal Investigations to investigate the scam.

Retail chain Tuskys Supermarket has suspended 70 employees at its Tom Mboya Street store in Nairobi on suspicion of internal theft.
The employees are accused of working with an external cartel that was allegedly clearing goods from the store and later selling them to retail shops in Nairobi and its environs.

Tuskys chief operations officer Peter Leparacho confirmed the suspensions and said the retailer had opened investigations on affected employees.

The retailer has also called in detectives from the Directorate of Criminal Investigations to investigate the scam.

Mr Leparacho said the cost of the thefts reported first a week ago had not been quantified.

“The 70 employees including the branch manager have been suspended for two weeks pending investigations whose outcome will determine their fate. We are working with detectives to get to the truth of the matter,” Mr Leparacho told the Business Daily.

The theft was only detected at Tusky’s Beba Beba branch.

Poor performance of the outlet that is located in the central business district triggered the investigations and subsequent audit on its operations.

The management of the outlet failed to explain why some goods were missing from the store and on the shelves yet they had been supplied and the drop in sales at the branch.

The performance of other outlets that had not been doing well yet are located in a prime locations is also set for review.

The supermarket said it has not hired fresh staff to replace the suspended ones but picked workers from existing branches in Nairobi to fill in the gaps.

Mr Leparacho said the suspended employees would not have their salaries deducted as per an agreement entered into with Kenya Union of Commercial, Food and Allied Workers.

Mr Boniface Kavuvi, who is the secretary-general of the union, could not be reached for a comment on issue since his mobile phone was switched off.

The Beba Beba outlet is located opposite Eastmatt Supermarket which took over the premise after Tuskys’ owners disagreed with the landlord over rent increment.

The area near bus termini is a prime shopping point given it attracts a huge population of people entering and leaving town. Tuskys, Ukwala and Eastmatt supermarkets are the only players in the area.

Tuskys, which is Kenya’s second largest supermarket chain by number of stores is a family business jointly owned by five brothers and two sisters

NSSF to invest heavily in coffee, cotton, cashewnut processing in three regions

By Felix Andrew

National Social Security Fund (NSSF)

 The National Social Security Fund (NSSF) has taken initiatives to invest heavily in coffee, cotton and cashewnut products by build building three key factories in three regions so as to add value to those crops.

This was said here on Tuesday by the NSSF Director General, Dr Ramadhan Dau when briefing stakeholders about the Fund during the 5th Annual General Meeting.  This year’s meeting is themed: Beyond Trading Social Security Job Creation, Entrepreneurship and Sports.

He said at the moment Tanzania does not export enough processed goods, the situation has denied the revenue to the government and income to the people.

“We intend to invest in processing plants in three regions, and once the projects are completed, Tanzania will no longer sell raw materials at cheaper prices as is the case at the moment,” he said.

Dr Dau said the Fund in collaboration with other stakeholders is planning to construct a cashewnut processing plant in Tandahimba in Mtwara Region later on this year or early next year.

He said it also intends to build coffee and cotton processing plants in Kagera and Mara regions respectively.

Explaining about the Fund’s progress, the NSSF boss said collections from members during the year ending June 2014 increased to 548bn/- from 476bn/- recorded during the 2012/2013 year. The increase was contributed by continued expansion in the Fund membership size.

During the 2013/2014 year the Fund’s membership size grew to 53,866 contributing employers and members from informal sectors.

On benefits, he said, the total amount paid to members increased by 51 percent from 228bn/- recorded in 2012/2013 to 344.7bn/- recorded last year.

He said the Fund maintains various streams of income from investment and the major sources include interests on loans, dividends, rental from Fund’s owned residential and commercial buildings, gains accrued from reselling of acquired plots and profits from associate companies.

Income from the investments during the year amounted to 222bn/- from 252bn/- recorded during the 2012/2013 year which is a decrease of 12 percent.

The decline was mainly due to a decrease in income from interest on loans which accounts for 91 percent of all income received.

Opening the meeting, Prime Minister Mizengo Pinda said social security industry plays a crucial role in the development of retired public and private workers hence more efforts are needed to include them in the sector.

“This has been mentioned in various local and international declarations and laws that everyone has rights to the social security services,” he insisted.

Hailing the NSSF for its efforts in supporting entrepreneurs and ensuring that a big percentage of Tanzanians join the scheme, he said:

“You have done a tremendous job in recruiting more Tanzanians both from formal and informal sectors to join the scheme which has various benefits to them and the nation,” he said.

However, Pinda revealed that the government has already started to address some of the challenges facing most of pension funds in the country.

“We have started to pay some of the loans which they owe us, and there is no fear that they are going to collapse due to bankruptcy,” he insisted.

According to him, the total contribution of pension funds to the economy has been growing steadily, three years ago it was 11 percent.

“It is my hope that the contribution has now gone further, this is a clear indication that the sector plays a major role in our development,” he said.

More than 900 stakeholders including trade unions, government officials, international organisations and media are attending the meeting which ends today.