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 commemorate 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 disclosed its initiative to settle claims within a 24-hour period, relying on technology, a dynamic workforce, and the rectification of its records.

NSSF Chief Executive and Managing Trustee David Koros stated that this initiative has already been implemented, referencing an instance in March when the fund processed seven claims at its Hill Branch within 24 hours.

Previously, the duration for claimants to receive their claims averaged 82 days in June 2023.

This period has been reduced to less than two weeks, the CEO indicated. “We are currently achieving an average of nine days,” remarked Mr. Koros during the NSSF’s 7th Annual General Meeting.

He expressed that the goal, according to the fund’s strategic plan, is to ensure claimants receive their payments within a single day by the 2027/2028 financial year.

“We have successfully disbursed benefits in one day. For example, in the preceding month (March), upon reporting to work on a Monday, we collected all claims submitted to our Hill Branch, and by 3 PM, we had settled seven of them. This demonstrates that it is feasible to process benefits within one day,” he asserted.

“We are establishing a target of 24 hours. You submit your claim on Monday, and by Tuesday at 4 PM, the funds will be deposited into your account. That is our commitment to you. ”

In the past two years, NSSF reports having disbursed benefits to over 200,000 retirees. For the fiscal year ending June 2024, SH9. 71 billion was paid out in benefits, marking a 46 percent increase.

First payslip

The promptness with which one can receive their dues from the fund has been a significant concern for retirees, a matter that has also drawn the attention of the Commission for Administrative Justice (CAJ), which issued a statement on the issue in February.

The CAJ, in its statement dated February 13, 2025, observed that retirees are required to provide documents such as a first payslip, which may be unattainable for some, as such records could date back more than twenty years.

“How are they expected to possess such documents? ” questioned Charles Dulo, the chair of the commission, following an unplanned visit to NSSF’s Bima House.

Mr. Koros, acknowledging these difficulties, noted that one method they are employing to ensure timely benefit payments is the adoption of new technology, the engagement of their newly recruited 400 young workforce, and the digitization of their records.

This process will entail the implementation of advanced technology and automation. “We will introduce a new system that will facilitate efficient processing of benefits,” he stated.

He mentioned that NSSF will also undertake data cleansing, highlighting that discrepancies in remittances from employers sometimes arise during the benefit processing phase.
“NSSF has been recognized to have deficiencies in contributions. We will target those employers who have not provided those contributions, such that ultimately, when you are retiring, we possess the data and information pertaining to you and we are prepared to disburse funds when you make a request,” he stated.

Mr. Koros articulated that the fund has enhanced its compliance department for this purpose from 80 to the current 300 officers who will also be charged with the responsibility of recruiting new employers.

The objective is that by the next financial year, NSSF will encompass 120,000 employers, an increase from the present 80,000.

This initiative will also result in the addition of one million new members, with 500,000 already enrolled.

The consensus for claims to be processed within 24 hours was reiterated by Labour and Social Protection Cabinet Secretary Alfred Mutua and Principal Secretary of the State Department for Labour and Skills Development Shadrack Mwadime.

“We need to ensure exceptional service to our customers. I will collaborate with you to reduce the payment period, and we will announce significant developments,” stated CS Mutua.