Reprieve for Retired Teachers, Civil Servants as NSSF will pay Pension in a day, First Payslip Requirement Dropped
NSSF Board of Trustees Chairman David Kariuki Njeru, CEO/Managing Trustee David Koross, and other Trustees celebrate 60 years of innovation, inclusion, and sustainable growth during the 7th Annual General Meeting at the Safari Park Hotel, Nairobi, on April 25, 2025. [Courtesy]
The National Social Security Fund (NSSF) has announced its intention to settle claims within 24 hours, relying on technology, a flexible workforce, and record improvement.
NSSF Chief Executive and Managing Trustee David Koros mentioned that this has already been achieved, referencing a specific instance in March when seven claims were paid at its Hill Branch within a 24-hour period.
The wait time for individuals to receive their claims was 82 days in June 2023.
This duration has been reduced to under two weeks, as stated by the CEO. “We are now averaging nine days,” remarked Mr. Koros during NSSF’s 7th Annual General Meeting.
He indicated that the objective, according to the fund’s strategic plan, is to have claimants receive their payments in one day by the 2027/2028 financial year.
“We have been able to pay benefits in one day. For example, last month (March), we reported to work on a Monday, collected whatever claims had arrived at our Hill Branch, and by 3 PM, we had settled seven of them. That demonstrates that paying benefits in one day is feasible,” he said.
“We are setting a target of 24 hours. You submit your claim on Monday, and by Tuesday at 4 PM, the funds are in your account. That is our promise to you. ”
In the past two years, NSSF reports that it has provided benefits to over 200,000 retirees. In the fiscal year ending June 2024, Sh9. 71 billion was distributed as benefits, marking an increase of 46 percent.
First payslip
The timeframe for retirees to receive their dues from the fund has been a major concern, an issue that has involved the Commission for Administrative Justice (CAJ), which issued a statement in February regarding the matter.
The CAJ, in its February 13, 2025, statement, pointed out that retirees are required to present documents such as a first payslip, which is unattainable for some individuals since these could date back over two decades.
“How are they expected to possess such documents? ” questioned Charles Dulo, the chair of the commission, after an unscheduled visit to NSSF’s Bima House.
Mr. Koros, recognizing these obstacles, acknowledged that one of the methods being implemented to ensure timely payment of benefits involves adopting new technology, utilizing their recently hired 400-member youthful workforce, and digitizing their records.
This process will include leveraging advanced technology and implementing automation. “We will introduce a new system that will allow us to process benefits efficiently,” he stated.
He mentioned that NSSF will also start data cleaning, observing that sometimes gaps in remittances from employers are detected during the benefits processing.
“NSSF has been recognized for having deficiencies in contributions. We will target those employers who have failed to make those contributions so that ultimately, when you retire, we possess the data and information pertaining to you and are prepared to pay when you reach out,” he stated.
Mr. Koros mentioned that the fund has strengthened its compliance department for this objective, increasing the number of officers from 80 to the current 300, who will also be responsible for attracting new employers.
The goal is that by the next financial year, NSSF will expand to 120,000 employers, up from the current 80,000.
This initiative will also lead to the addition of one million new members, with 500,000 already enrolled.
The call for claims to be processed within 24 hours was also supported by Labour and Social Protection Cabinet Secretary Alfred Mutua and Principal Secretary for the State Department of Labour and Skills Development Shadrack Mwadime.
“We must be very attentive to our customers. I will collaborate with you to reduce the (payment period), and we will have a significant announcement,” said CS Mutua.
