The government had initially wanted to provide for dual supervision of the Fund, putting the Ministry of Gender in charge of the social security arm of the Fund, which deals with the welfare of workers and their savings while the Ministry of Finance, would supervise the Investment arm which deals with the business component where savings are invested in assets to generate income.
NSSF Pensions tower
The Gender committee of Parliament has resolved to revert the management and supervision of the National Social
Security Fund (NSSF) to the Ministry of Gender.
The fund is a government agency responsible for the collection, investment and distribution of retirement funds from
employees who are not covered by the government
retirement scheme. Every
month institutions deduct 5 per cent of employees’ salaries as a contribution to
NSSF, the employers top it up with 10 per cent. Its portfolio is estimated at 15 trillion Shillings.
The government had initially wanted to provide for dual
supervision of the Fund, putting the Ministry of Gender in charge of the
social security arm of the Fund, which deals with the welfare of workers
and their savings while the Ministry of Finance, would supervise the Investment arm which deals
with the business component where savings are invested in assets to
President Yoweri Museveni wrote to Parliament objecting to the
suggestion for dual supervision. The President advised that the
split oversight mandate would cause delays in decision making and create
loopholes for corruption. On the basis of the guidance, the 10th
Parliament voted to retain the supervision of the fund under the
Ministry of Finance.
But he did
not assent to the law, as enacted by the 10th parliament. Instead, he
returned it to the 11th parliament for further scrutiny. After a series
of engagements with stakeholders, the committee tasked with the job has
now recommended that the supervision of NSSF reverts to the Ministry of
The committee did
not accept the issue of the dual
supervision of the fund as earlier on proposed and also rejected the
idea of having the NSSF Managing Director as a member of the board with
voting rights, according to members of the committee who preferred to
speak off the record.
“We have all agreed that
the fund should remain with the
Ministry of Gender, because this is a social protection fund, and that
Finance cannot have the fund at its disposal if it is moved under
their direct management and supervision,” a source said. Another MP said
that they had to endure a lot of pressure to make the decision against
the Ministry of finance.
members said that they have yielded to requests to allow persons with
a disability access to 50 per cent of their savings when they clock 40.
The initial approval was to offer them access to 75 per cent of accrued
benefits after a year out of employment, which however was rejected by
the president with advice that the clause should be deleted.
President argued that allowing Persons with Disabilities access to the
fund on such ground will pit the savers at a high risk of poverty in
old age. But the National Union of Disabled persons said that Persons
with Disabilities grow weaker as they age and need to have their money
when they can still use it.
committee member told URN that they heard
from the different Unions of persons with disabilities, and agreed to
maintain the clause with adjustments in the percentages that can be
accessed. The MPs also confirmed to URN that the midterm access has
been approved for persons who have saved for 10 years and have clocked
The report is yet to be presented to Parliament for the second reading of the bill.