Economy

MPs give workers, employers stronger voice on NSSF board

mps

MPs Thursday evening voted 73-63 in favour of the amendment that went before the House as it debated the Finance Bill. PHOTO | FILE

Parliament Thursday moved to shield Kenyan workers from possible loss of retirement savings to arbitrary decisions made by the National Social Security Fund (NSSF) directors in the absence of their representatives.

The National Assembly passed an amendment to the National Social Security Fund Act that if signed into law will bar the fund’s board from meeting without the workers’ and employers’ representatives.

The amendment, which was initiated by Homa Bay women representative Gladys Wanga, provides that the NSSF will not have a quorum in the absence of trustees representing the two parties.

The workers are represented in the NSSF board by a nominee of the Central Organisation of Trade Unions and the employers by the executive director of their lobby — the Federation of Kenya Employers (FKE).

MPs Thursday evening voted 73-63 in favour of the amendment that went before the House as it debated the Finance Bill.

The amendment effectively weakens Labour minister Kazungu Kambi’s grip on the provident fund whose management was thrown into disarray early this year with the ouster of Cotu secretary-general Francis Atwoli and FKE director Jacqueline Mugo from the board of trustees.

READ: Labour minister ejects Atwoli, Mugo from NSSF board

Mr Kazungu fired the duo through a gazette notice, quoting an amendment to the NSSF that limits the terms of directors to three years.

Ms Wanga told Parliament that it was important that Cotu and the FKE be present whenever the business on members’ funds is conducted.

“This is basically to create balance, to ensure that NSSF moves forward in the manner that is anticipated, to secure funds that have been contributed by workers and employers,” she said.

Ms Wanga said that the impending increase in the amount of money the NSSF will handle required tighter controls for prudent management.

But Kipipiri MP Samuel Gichigi opposed the amendment, arguing that the House rules did not allow changes to be made to the NSSF Act through the Finance Bill.

“The Finance Bill has the intention of introducing measures of raising revenues. The intention of this amendment is something that is completely different from issue of taxation,” Mr Gichigi said.

Mr Kazungu said that, among other reasons, he had sacked Mr Atwoli and Ms Mugo for missing board meetings. 

The minister claimed that Mr Atwoli had missed nine consecutive meetings and that the two had sat on the NSSF board for too long.

The minister fell out with the duo after they questioned the NSSF’s plan to spend billions of shilling to build roads in Nairobi’s Tassia estate.