COTU warns MPs against undermining confidence in NSSF

NAIROBI, Kenya, Oct 19 – The Central Organisation of Trade Unions (COTU) has accused Members of Parliament of undermining public confidence in the National Social Security Fund (NSSF) through what it termed unsubstantiated allegations about the management of workers’ retirement savings.

In a statement, COTU Secretary-General Francis Atwoli said the union was concerned about remarks made by MPs during deliberations on the Public Service Superannuation Scheme (Amendment) Bill, warning that sweeping accusations could erode trust in an institution relied upon by millions of workers.

The union singled out National Assembly Majority Leader Kimani Ichung’wah, expressing disappointment at his participation in the criticism despite what it described as a cordial working relationship with him on legislation affecting workers’ welfare.

COTU, which has two representatives on the NSSF Board of Trustees, said it supported parliamentary scrutiny of the fund but cautioned against allegations made without supporting evidence.

“Ordinarily, COTU (K) would welcome legitimate parliamentary scrutiny of any institution entrusted with the hard-earned savings of Kenyan workers, but there is a fundamental difference between responsible parliamentary oversight and making sweeping, unsubstantiated accusations that risk destroying public confidence in an institution that millions of Kenyan workers depend upon for their retirement security,” Atwoli said.

The union said it had not received complaints from its members or any of its 47 affiliated trade unions regarding the alleged denial of benefits or demands for cash by NSSF officials to facilitate payments to retirees.

It challenged MPs making such claims to provide evidence, identify affected contributors and initiate the appropriate accountability processes rather than make general accusations against the fund’s management.

The remarks come amid parliamentary scrutiny of public pension arrangements and concerns over the administration of workers’ savings, with COTU warning that the debate should not discourage employers and workers from meeting their statutory contribution obligations.

NSSF growth

In defending the fund, COTU highlighted what it described as a significant improvement in its financial position over the past three years.

The union said NSSF’s portfolio had grown from approximately Sh312 billion to Sh814 billion, putting it on course to become a trillion-shilling fund.

It also recalled that when Atwoli joined the NSSF Board, the fund’s portfolio stood at Sh26 billion and had grown to Sh300 billion by the time he left the board in 2021.

COTU said the fund had recorded investment returns of approximately 11 per cent in the 2023/2024 financial year and 17 per cent in 2024/2025, describing the performance as evidence of progress in growing workers’ retirement savings.

The union added that NSSF had received clean audit opinions from the Office of the Auditor-General for two consecutive years, which it said demonstrated improvements in financial reporting and institutional accountability.

It also cited the proposed consideration of alternative investments, including the Rironi-Mau Summit Highway, as part of efforts to improve returns.

However, COTU warned that the fund’s growing financial strength could attract political interest from individuals seeking to influence its investment and management decisions.

It urged the NSSF management and board to resist intimidation, blackmail and pressure, particularly as the country approaches the 2027 General Election.

The union said its representation on the board was intended to protect contributors’ interests, promote accountability and safeguard investment decisions from inappropriate interference.

Benefits processing

COTU also disputed claims that retirees from remote counties, including Marsabit and Garissa, must travel to Nairobi to access their benefits.

Atwoli said NSSF operated 64 branches across the country, allowing members to seek assistance, submit claims and make inquiries without necessarily visiting the fund’s headquarters.

He further said the average period for processing benefits had fallen from approximately 87 days to seven days.

The union said it was engaging the fund’s management to reduce the turnaround time further, to process claims within one day.

COTU maintained that these improvements should be considered in parliamentary discussions about the institution’s performance and service delivery.

It nevertheless stopped short of calling for an end to scrutiny, insisting that concerns about possible misconduct should be investigated through appropriate channels.

The union said Parliament had a constitutional responsibility to oversee public institutions but warned that statements made without evidence could damage the credibility of the very institutions lawmakers were expected to strengthen.

Retirement savings

The labour movement also called on MPs to encourage workers in the informal economy to embrace NSSF’s Haba na Haba savings product, which is intended to expand retirement savings opportunities to people outside formal employment arrangements.

COTU said political leaders should focus on expanding pension coverage and encouraging voluntary contributions instead of making statements that could discourage informal sector workers from saving.

“Instead of frightening informal sector workers away from NSSF through sweeping accusations, Parliament should be leading national conversations on how to expand coverage, strengthen confidence and ensure that every Kenyan worker, regardless of their employment status, can save towards a dignified retirement,” the statement said.

The union warned that declining public confidence could weaken compliance with statutory contributions, discourage voluntary savers and undermine efforts to expand social protection.

It said workers’ retirement savings must remain the priority in decisions concerning the fund’s management, investments and accountability.

COTU reiterated that its role on the NSSF Board of Trustees was substantive, adding that it would continue to demand accountability while resisting interference that could jeopardise contributors’ savings.