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NSSF commits to paying out retirement benefits within 24 hours

NSSF Chief Executive Officer David Koros. (X)

By Lucy Mumbi | 07 May 2024

Koros reiterated the importance of boosting the country’s savings rate, aiming to reach about 30 per cent of the GDP, a benchmark he said has been achieved by several nations.

The National Social Security Fund (NSSF) has pledged to expedite the payment of retirement benefits within one day after the filing of a claim.

This means that retirees will be able to receive their pension payments within 24 hours, a significant improvement from the current situation where they sometimes wait up to a year.

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NSSF CEO David Koros made the announcement on Tuesday during the launch of the fund's 2023-2027 Corporate Strategic Plan.

"NSSF has been known not to pay claims for up to one year. I think you have heard these stories of some Kenyans dying before being paid, but we are going to make this a thing of the past, we will be paying benefits within one day by the end of this plan which is 2027,” Koros said.

“We want to get to a place where when you claim your benefits, you can get them within 24 hours. If you claim your benefits on Tuesday morning, on a Wednesday morning your money should be in your account."

He highlighted the need for a cultural shift among Kenyans regarding the perception of retirement savings after statistics revealed that only six per cent of retirees rely on pension schemes, while 60 per cent of pensioners still engage in employment to sustain themselves.

"We must distinguish between taxes and savings. Saving with NSSF is an investment in one’s future, not a mere deduction like tax. Our strategic plan is a living guide that will inform our decisions and actions in the coming years. We have set ambitious targets, and we are committed to achieving them through a collaborative effort," he explained.

Koros reiterated the importance of boosting the country’s savings rate, aiming to reach about 30 per cent of the GDP, a benchmark he said has been achieved by several nations.

“Other countries have done it and there is no reason for us to do it... Savings are for your benefit. Members should know they are saving for themselves,” he said.

He noted that most of Kenya’s population is young, and if they adopt the saving habit now, they can enjoy a comfortable retirement.

The NSSF 2023-2027 Corporate Strategic Plan aims to address challenges identified during the mid-term review of the last Strategic Plan 2019-2022 in efforts to improve service delivery for customers, various departments, and relevant stakeholders in the country.