The National Social Security Fund (NSSF) is exposed to at least KSh 15.6 billion in unresolved financial claims, asset impairments, and contribution arrears, according to the pension firm’s internal disclosures.
- •The bulk of the exposure stems from KSh 12.6 billion in uncollected employer contributions and penalties as of June 2024, which remain excluded from the Fund’s financial statements.
- •Of this amount, KSh 3.14 billion is attributed to statutory contributions, and KSh 9.48 billion to penalties, including KSh 224.4 million linked to defunct local authorities.
- •The Fund stated that it will pursue recovery through litigation, alternative dispute resolution, and intergovernmental coordination.
The company also reported that impaired investment properties worth KSh 965 million remain the subject of ongoing legal proceedings. These include KSh 850 million in disputed land in New Muthaiga, located within Karura Forest Reserve, and KSh 115 million in plots adjacent to Lenana School, whose title was revoked by government notice in 2010. The Ethics and Anti-Corruption Commission (EACC) is investigating both cases.
Moreover, KSh 251.5 million remains unrecovered from the collapse of Euro Bank in 2003. Although the Fund was awarded KSh 258.1 million in a successful claim against Shah Munge & Partners, competing ownership claims delayed asset realization. The eventual sale of identified shares netted KSh 92.7 million, from which KSh 23.5 million was deducted as legal costs.
The Pension company is also pursuing recovery of KSh 1.2 billion tied to fraudulent dealings with Discount Securities Ltd. Furthermore, an outstanding KSh 904.9 million tax refund from the Kenya Revenue Authority (KRA) awarded by the High Court in 2016, is yet to be paid.
Additionally, KSh 7.24 million was lost through fraud at the Fund’s Westlands branch and is the subject of a court case. Several contingent liabilities are also pending; including a KSh 7.06 billion claim filed by Mugoya Construction Company Ltd against the Fund relating to Nyayo Estate projects, KSh 460.2 million claim lodged by Centurion Engineers for delayed payments under a refurbishment contract, and KSh 37.6 million claim by House of Leather, a former tenant at Hazina Trade Centre, for alleged loss of business following.
The Fund is also facing a KSh 50.1 million compensation claim from Keiyo Teachers Sacco over land in Eldoret that overlapped with property held by Kenya Prisons. The High Court ruled in the Sacco’s favor in 2020 but negotiations toward an out-of-court settlement are ongoing.
