Auditor General Reveals Sh16 Billion Loss at NSSF

The National Social Security Fund (NSSF) recorded a loss of over Sh16 billion in the financial year ending June 2024, according to a report by the Auditor General. The losses stemmed from ghost taxes, bad investments, idle assets, costly travel, and questionable renovations.

The report highlights that Sh904 million was erroneously paid to the Kenya Revenue Authority (KRA) as taxes, with no refund or interest accrued. Another Sh115 million was spent on acquiring land in Upper Hill, which was later reclaimed as public property after its title was revoked.

Two investment companies saw a 17.6% drop in value, costing the fund Sh27 million, while Sh38 million remained tied up in shares of a loss-making bank. NSSF also suffered a Sh272 million loss after spending Sh12 billion on government bonds bought at a premium.

Idle properties in Nairobi’s CBD valued at Sh4 billion remain unused, and eight tenants, protected by court orders, owe the fund Sh14 million in unpaid rent.

Administrative costs were also a major concern, with Sh317 million spent on travel, meetings, and conferences, including Sh11 million on conference expenses alone. Renovation costs amounted to Sh411 million, with Sh14 million linked to questionable procurement practices.

In addition, Sh51 million was spent on vehicle operations, while Sh2.1 million was spent on a single reception desk. Trustees received Sh69 million in emoluments, raising further questions about governance.

The Auditor General’s report has intensified calls for accountability and reforms at NSSF.