Reprieve for Retired Teachers, Civil Servants as NSSF will pay Pension in a day; First Payslip Requirement Dropped

Reprieve for Retired Teachers, Civil Servants as NSSF will pay Pension in a day, First Payslip Requirement Dropped

The National Social Security Fund (NSSF) has disclosed its intention to process claims within 24 hours, relying on technology, a flexible workforce, and rectifying its records.

NSSF chief executive and Managing Trustee David Koros stated this has already been accomplished, referencing an instance in March when the fund settled seven claims at its Hill Branch within 24 hours.

The previous waiting time for one to receive their claims was 82 days in June 2023.

This has now been reduced to under two weeks, the CEO mentioned. “We are currently averaging nine days,” Mr. Koros articulated during NSSF’s 7th Annual General Meeting.

He indicated the goal, according to the fund’s strategic plan, is to disburse payments to claimants within one day by the 2027/2028 financial year.

“We have successfully paid benefits in one day. For example, last month (March), we reported to work on a Monday, collected whatever claims had arrived at our Hill Branch, and by 3pm we had settled seven of them. That shows it is feasible to pay benefits in one day,” he remarked.

“We are setting ourselves a target of 24 hours. You submit your claim on Monday, and by Tuesday 4pm, the funds will be in your account. That is our promise to you. ”

Over the past two years, NSSF claims it has provided benefits to more than 200,000 retirees. In the fiscal year ending June 2024, Sh9. 71 billion was distributed as benefits, marking a 46 percent increase.

First payslip

The speed at which one can obtain their payments from the fund has been a significant concern for retirees, a matter that has involved the Commission for Administrative Justice (CAJ) who in February issued a statement regarding it.

The CAJ, in its February 13, 2025, statement, highlighted that retirees are being required to submit documents such as a first payslip, which is unattainable for some, since such documentation could date back over two decades.

“How are they expected to possess such documents? ” questioned Charles Dulo, the chair of the commission, after an unannounced visit to NSSF’s Bima House.

Mr. Koros, recognizing these challenges, pointed out that one of the strategies they are implementing to ensure timely payment of benefits is through adopting modern technology, leveraging their recently hired 400 young workforce, and digitizing their records.

This will encompass employing the latest technology and implementing automation. “We will introduce a new system that will allow us to process benefits more efficiently,” he explained.

He mentioned that NSSF will also initiate data cleaning, observing that during the benefits processing, discrepancies in employer remittances are sometimes identified.
“NSSF has been recognized for having deficiencies in contributions. We aim to pursue those employers who have failed to make those contributions, so that ultimately, when you reach retirement, we possess the data and information relevant to you and are prepared to disburse payment when you request it,” he stated.

Mr. Koros mentioned that the fund has strengthened its compliance department for this objective, increasing the number of officers from 80 to the current 300, who will also be responsible for onboarding new employers.

The goal is that by the upcoming financial year, NSSF will register 120,000 employers, up from the current 80,000.

This will additionally see the inclusion of one million new members, with 500,000 already onboarded.

The call for claims to be processed within 24 hours was reiterated by Labour and Social Protection Cabinet Secretary Alfred Mutua and Principal Secretary of the State Department for Labour and Skills Development Shadrack Mwadime.

“We must prioritize our customers effectively. I will collaborate with you to reduce the payment time, and we will make a significant announcement,” stated CS Mutua.