13 January 2014

Kenya: What Will NSSF Pay Its Savers?


PARLIAMENT is due this week to discuss the NSSF contract for infrastructure work at the Tassia estate.

The cost has risen from Sh3.5 billion to Sh5 billion. Superficially this does not seem excessive considering that there are over 5,000 houses.

However by focussing on the cost of the upgrade, we are losing sight of a much bigger question.

Are the members of the NSSF getting value for money? Will this investment provide a satisfactory return?

Investors can get nine percent interest buying Kenyan Treasury Bills. This should be the minimum rate for NSSF savings.

In the past, workers ignored the NSSF rate of return because they did not pay much.

However starting this month, the 2.2 million members will pay six percent of their gross salary to the NSSF matched by six percent from the employer.

NSSF will therefore receive Sh10 billion this January, and around Sh115 billion this year. This is a lot of money.

Unless NSSF savers get at least nine percent interest, they are being swindled.

So MPs should ask the big question this week, what is the Return on Investment of Tassia? Is the NSSF getting an annual return of at least nine percent on the Tassia project?


Marwa Vows to Crack Down On Gang in Kisauni Ahead of Festive Season

Mombasa County Commissioner Nelson Marwa has promised to crack down on a knife-wielding criminal gang known as Wakali … see more »

Copyright © 2014 The Star. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 1,700 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.