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Civil Service Fraud

Scandal Ridden NSSF Books Have Contributions Gaps Of Ksh14 Billion

An audit report on the scandal-ridden NSSF has revealed that retirees will lose billions of shillings in the enterprising construction and capital projects undertaken by the fund.

The audits slammed confused NSSF management after revealing that the financial books had unremitted member contributions amounting to Sh5.6 billion and its contributions balance of Sh14 billion.

The retired AG Edward Ouko’s  report reveals blunders in the payment of (Nairobi) Hazina Trade Centre contractor and uncollected balances in respect of sold Milimani Executive Apartments – Nairobi.

The AG also flagged chaotic ownership disputes at Mavoko land, a non-beneficial lease of Mombasa’s Hazina Plaza as well as a plot in Upper Hill which was fraudulently transferred to the Judiciary.

According to the embattled NSSF management, the gaps recorded as unremitted monies could be from M-Pesa payments and miscellaneous income. The explanation that the auditor general rubbished off because the branch reports did not have nor reflect any pending transactions.

There are individuals who are committed to fleece the fund to its cessation. We published here the other day on how Julias Karangi’s Kikuyuism is blocking top changes at the falling pensioners fund.

Further, there is a court case whose Judgement has raised fears that the NSSF could lose Sh20 million in workers’ pension funds invested in the land whose title was revoked by the National Land Commission in favour of the Judiciary.

The scandal are in almost every, if not all of, NSSF project and investment. In August this year, the retired Auditor General Edward Ouko warned of a possible loss of Sh48 million in a dysfunctional CCTV installation at Mombasa Social Security House.

This site has also published on how the Fund lost millions of pensioners funds to Chinese construction firms. The auditor general has said that NSSF risks losing Sh215 million which was an advance payment to China Jiangxi International Kenya Ltd for the construction of 324 housing units at Nyayo Estate, Embakasi. The Chinese firm had already pocketed hefty amounts yet only 44 units out of the 324 units in the Sh2.1 billion project had been constructed as of March last year.

Ouko warned that apart from the risk of losing the downpayment, the Fund risked paying more money for the delayed works.  The job should have been concluded by November 2014.

“Although the delays were blamed on the City Hall approvals, there is no sign of effort made to ensure completion of the project, putting members at the risk of losing the money paid,” the report reads.

Also, the Chinese contractors scaled-down work on Hazina Trade Centre that commenced in June 2013 at a cost of Sh6.7 billion. The firm was supposed to erect 34-storeys but only did 15 storeys.

Auditor General Edward Ouko Exposes NSSF Scandal

“As on June 30, 2018, the contractor had been paid Sh2.1 billion; considering the minimal work mobilization at the site, it is not clear whether the construction works would be completed,” Ouko report said.

Nanchang Foreign Engineering Company (Kenya) Ltd, completed Sh1.6 billion NSSF project and handed over the houses in April this year yet NSSF management has not collected Sh2.8 billion from buyers of the executive apartments at its blocks in Milimani, Nairobi. According to the audit report, NSSF has only collected Sh753 million out of the intended Sh3.6 billion. Who is this that wants to loot the remaining monies?

but had received a paltry Sh753 million as of April. It must collect the remaining amount to achieve the intended benefits.

Ownership rows at Mavoko land have put to risk contributors’ investment of Sh126 million, being an unsettled debt by AMS Properties Ltd following a November 2011 agreement. They have paid only Sh12.6 million from the balance of Sh113.4 million they were supposed to settle in 90 days fro November 2011.

“This has not been settled to date. The management explained that the contract has been terminated following a dispute over the location of the seven plots.”

Michael Mubea, The EACC Mafia That Burried Tom Odongo’s Sh1.3 Billion NSSF Scandal


Audits reports also indicate that NSSF Contributors lost the Sh450 million spent to acquire the nine-storey Hazina Plaza in Mombasa in 1994. The four stars that had leased the property on a Sh 60 million annual rent closed in 2001 and the property auctioned at Sh300 million.

Surprisingly, there are no bidders that were interested in the property. In 2010, the Plaza was leased to Techno Holdings at Sh27 million annually. Auditor General reports state that only Sh66 million can be accounted for by NSSF. In the 6 years lease, the fund’s management has swindled Sh96 million.

“In view of the foregoing, the Fund has not realised any value for money from the investment of Sh450 million in the building,” Ouko said.

Contributors may also not get value for Sh178 million unrecovered investment at Milimani Upmarket houses, in Kisumu.

In the CCTV case, the audit blames the Fund for failing to include a service maintenance clause in the Sh226 million contract assigned to EPCO Builders Ltd. The installations only worked for a few months before developing technical issues because there was no budget for maintenance.


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