Kenyan workers will have to part with millions of shillings to replace the controversial ICT system at the National Social Security Fund.

This follows revelations that the system that was installed at NSSF three years ago at a cost of Sh510 million had failed to achieve its intended role, among them networking the branches and headquarters.

As a result, NSSF is planning to dump the infrastructure and replace it with a more efficient one.

A November 2008 audit by the Inspectorate of State Corporations on NSSF's operations found that the ICT project -- a human resource management and payroll system, and the financial accounting system -- were not functional despite the heavy investment.

And on Wednesday, NSSF managing trustee Alex Kazongo invited interested local and international companies to bid for the supply and implementation of a new ICT system.

The planned installation is the clearest sign that the public pension manager is making an effort to bring back better times, meant to shield billions of shillings in workers' contributions which has remained exposed amid power struggles that have rocked NSSF in recent years.

This has the potential of winning back the public's confidence in the management of the Sh80 billion fund which hit its lowest ebb following a series of financial scandals and a management crisis that has paralysed its operations.

Analysts said installation of a new IT infrastructure, which would cost a similar amount as the existing one, would ensure efficiency and effectiveness in the running of the affairs of NSSF.

It would, for example, ensure quick payment of retirees' benefits as they fall due and as the number of its members increase with an ongoing recruitment.

This comes at a time when the fund is bracing for heightened activity, following its decision to make it mandatory for employers, regardless of the number of people on their payroll, to make monthly social security contributions for their workers.

The move, announced last week, promises to offer millions of Kenyans in micro enterprises and households security in retirement, with the potential of roping in at least five million new members into the fund.

"The overall objective of the consultancy is to implement an... ICT system that will meet both the immediate and future needs of NSSF and be flexible enough to meet the changing needs over the next five to 10 years," says the Expression of Interest (IOE).

The winning consultant will among other things be required to review the current system and identify the gaps, thereby disposing any parts which will form the new system, says NSSF in an advert in the local dailies.

Interested bidders have up to December 15, 2009 to apply for the tender.

"The implementation of the computerisation project was haphazard and the fund is yet to get value for money put into the project," says an audit report by the Kenya Anti Corruption Commission and the Inspectorate of State Corporations.

"We recommend that a technically competent agency such as the Government Information Technology Services be requested to undertake a technical appraisal of the fund's IT systems and advise appropriately."