Mr Tom Odongo. Labour secretary Kambi Kazungu announced Mr Tom Odongo’s instant dismissal as managing trustee of NSSF on Monday. Photo/File
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Labour secretary Kambi Kazungu announced Mr Tom Odongo’s instant dismissal on Monday as NSSF continued with its bold reform measures and embarked on a raft of mouth-watering multi-billion-shilling projects.
Mr Odongo had held the position for barely eight months following his confirmation last November after holding it in an acting capacity for ten months. He becomes the sixth chief executive of the Sh126 billion fund to exit in a period of five years, a move that could further shake public confidence.
In a statement released on Monday, Mr Kazungu said Hope Mwashumbe, the corporation’s secretary, would lead the fund, which is seeking more contributions from the public through a Bill to be published this week, in an acting capacity.
Tom Odongo has been sacked as the managing trustee of the National Social Security Fund (NSSF), joining a growing queue of parastatal heads falling foul of the new political dispensation.
Labour secretary Kambi Kazungu announced Mr Odongo’s instant dismissal on Monday as NSSF continued with its bold reform measures and embarked on a raft of mouth-watering multi-billion-shilling projects.
Mr Odongo had held the position for barely eight months following his confirmation last November after holding it in an acting capacity for ten months.
He becomes the sixth chief executive of the Sh126 billion fund to exit in a period of five years, a move that could further shake public confidence.
In a statement released on Monday, Mr Kazungu said Hope Mwashumbe, the corporation’s secretary, would lead the fund, which is seeking more contributions from the public through a Bill to be published this week, in an acting capacity.
“I regret to inform you that your employment with NSSF shall be terminated with immediate effect. Please arrange to return any company property that is in your possession and hand over the office to Ms Mwashumbe,” said Mr Kazungu.
Mr Kazungu also sent home Fred Rabongo who was a member of the board of trustees representing the private sector as he was not aligned to any specific interest. Mr Rabongo had in 2008 acted as managing trustee for less than a week.
Mr Odongo took over from Alex Kazongo, who was fired in February last year after two years in charge.
Mr Kazongo had differed with then minister, Amason Kingi, over the management of East Africa Portland Cement Company leading to temporary closure of the company after staff unrest and its suspension from trading at the Nairobi Securities Exchange. He was fired due to claims of incompetence.
Other former occupants of the hot seat include Rachel Lumbasyo, James Akoya and Albert Odero. When he took over last year Mr Odongo’s principal task was managing the reforms aimed at establishing professionalism at the NSSF, eliminating corruption and increasing returns to membership.
He has been lobbying Members of Parliament to support the NSSF Bill, when it is tabled in the House. It seeks to convert the social fund to a pension scheme while also increasing workers’ contribution to their retirement years.
Last week in an interview with the Business Daily, Mr Odongo said that the bill was also meant to address concerns of high turnover of the fund’s top managers. “The chief executive will be appointed by the board of trustees and not the cabinet secretary. He will serve for a three year term renewable only once” said Mr Odongo.
The board will have eight members being two representatives each for the government, employers, employees and independents. The CEO will serve as an ex-officio on the board of trustees.
The major controversy during Mr Odongo’s term has been the out- of- court settlement with Mugoya Construction and Sololo Outlets of Cyrus Jirongo to the tune of Sh810 million.
Mugoya received Sh320 million as settlement of a Sh3 billion court case while Mr Jirongo received Sh490 million in settlement of a Sh4.2 billion claim.
Mr Odongo had led NSSF in a rebranding exercise in an effort to shed corruption and mismanagement tags.
The fund has been dogged by corruption and court cases associated with procurement of services that have seen the Kenyan employee lose value of future retirement packages.
He had also spearheaded restructuring at the fund which had seen it give early retirement packages to 315 employees and was considering more exits before he was exited himself.
The job is controversial because of the history of the NSSF as a milk cow for political interests and well-connected merchants and, always attracts intense scrutiny and vicious political infighting.
Currently the fund is proposing to undertake real-estate projects exceeding Sh128 billion.
The projects include the recently commissioned extension of Hazina Trading Centre to be the tallest building in the country at a cost of Sh6.7 billion, Milimani apartments close to state house at Sh1.6 billion and 100 apartments in Kisumu.
The fund is also looking for investors to partner with in constructing a city in Mavoko at Sh80 billion and to construct a 62 storey building valued at Sh20 billion on its 1.99 acre plot on Kenyatta Avenue opposite Teleposta.
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