Kenya’s National Social Security Fund (NSSF) is facing mounting scrutiny following a damning report by the Office of the Auditor-General, which has revealed widespread concerns over the management of billions of shillings in members’ contributions.
At the centre of the revelations is KSh 4.02 billion worth of prime properties in Nairobi’s central business district that have remained idle and undeveloped for years. Even more troubling, the audit indicates that ownership of some of these assets cannot be conclusively confirmed, exposing them to potential legal disputes or fraudulent claims.
The findings have sparked alarm among consumer rights groups, with the Consumers Federation of Kenya (COFEK) warning that millions of Kenyans’ retirement savings could be at risk if urgent reforms are not implemented.
The audit, covering the financial period ending June 30, 2025, paints a broader picture of institutional weaknesses, particularly in asset management and long-term planning. Several high-value projects funded by NSSF have stalled for years, including the Nyayo Embakasi Estate Phase Four project, valued at approximately KSh 2.15 billion, which remains incomplete more than a decade after its initiation.
Despite these delays, the fund has continued committing significant resources to new developments, including KSh 1.4 billion projects in Machakos and Kisumu, as well as plans to borrow an additional KSh 1.6 billion for another housing scheme in Kisumu. Critics argue that this pattern reflects poor prioritization and raises concerns about governance and financial discipline.
Beyond real estate concerns, the audit uncovered KSh 163 million in lost member records, representing contributions that cannot currently be traced to individual accounts. Additionally, KSh 81.9 million was flagged in suspense accounts with unclear ownership, further complicating accountability.
Analysts say these gaps could have serious implications for retirees, particularly those who depend on accurate contribution records to access their benefits. COFEK has described the situation as a breach of fiduciary duty, urging immediate digitization and secure management of member records.
“The retirement security of millions is at stake. This is not just about money; it’s about trust and accountability,” a COFEK representative noted.
The report also highlighted irregular staff payments totalling KSh 21.2 million, including allowances paid to employees serving in acting positions beyond the legally permitted duration without board approval, as well as payments to officers on special duty without proper authorisation. These findings point to systemic weaknesses in internal controls and oversight mechanisms within the institution.
In response, COFEK has called for a comprehensive forensic audit to fully establish the extent of mismanagement and determine accountability. The organisation is also urging Parliament’s oversight bodies, including the Public Investments Committee, to summon NSSF leadership and demand explanations for the recurring audit concerns.
The controversy adds to a history of governance challenges within state-managed funds in Kenya. In previous years, questions have been raised over land acquisitions, stalled housing projects, and delayed reforms within public pension schemes, highlighting persistent structural issues in oversight and accountability.
The current revelations come at a time when public confidence in institutions managing long-term savings is increasingly under scrutiny. With millions of Kenyans relying on NSSF for retirement security, experts warn that unresolved governance gaps could erode trust in the system.
As of now, the National Social Security Fund has not issued a detailed public response addressing the latest audit findings. Its Chief Executive Officer, David Koross, has yet to comment on the specific concerns raised in the report.
For many observers, the situation represents a critical moment for reform. Calls are growing louder for the fund to prioritize completion of stalled projects, secure member records, strengthen internal controls, and enhance transparency in its operations.
Without swift and decisive action, stakeholders warn that billions of shillings in workers’ savings could remain exposed to inefficiency, weak oversight, and potential misuse—placing the financial futures of countless Kenyans at risk.
