Kenyans to Receive NSSF Funds within 24 hours

Kenyans to Receive NSSF Funds within 24 hours.

Recent statistics indicate that 84% of Kenyan adults lack social security funds, prompting the National Social Security Fund (NSSF) to embark on an ambitious project to disburse claims within 24 hours of submission. David Korros, the CEO of NSSF, underscored the imperative to address long-standing claims processing delays, acknowledging the fund’s reputation for delaying claims for up to one year.

Korros emphasized NSSF’s commitment to eradicating this issue by ensuring claims are processed within a day, aiming to achieve this by 2027. The objective is clear: beneficiaries should receive their benefits within 24 hours of filing a claim with NSSF, irrespective of when the claim is initiated.

During the unveiling of NSSF’s Corporate Strategic Plan 2023-2027, alarming statistics highlighted the inadequacy of pension systems in supporting retirees. Only 6% of retirees rely on pension schemes, while 60% continue working to sustain themselves.

Prime Cabinet Secretary Musalia Mudavadi stressed the urgent need for NSSF to expand its scope, citing the current income replacement ratio upon retirement at only 40%, far below the recommended 75%. Consequently, many retirees face financial hardships during their retirement years.

Additionally, despite NSSF saving over Ksh350 billion, President William Ruto revealed that 1.2 million elderly Kenyans go to bed hungry, with 800,000 living alone. Concerns over NSSF’s financial management have persisted, with Auditor General Nancy Gathungu disclosing unclaimed benefits totaling Ksh166.83 million by June 2022 and untransferred funds to the Unclaimed Financial Assets Authority, resulting in Ksh3.6 billion in unclaimed benefits.

Kenyans to Receive NSSF Funds within 24 hours

A baseline survey estimated unreported unclaimed financial assets at Ksh241 billion, indicating the necessity for robust regulatory procedures to safeguard retirees’ rights. These unclaimed assets underscore structural issues such as inadequate estate planning and beneficiaries unaware of their entitlements.

Korros reiterated the importance of a saving culture among Kenyans, emphasizing that retirement savings are not akin to taxation. He stressed the necessity of understanding the importance of retirement savings and increasing the savings rate as a percentage of GDP to approximately 30%.

Moreover, he encouraged the predominantly young Kenyan population to save for the next 30 years to ensure a comfortable retirement.