NSSF REDEFINES KENYA’S SOCIAL SECURITY BY LAUNCHING A FIVE YEAR CORPORATE STRATEGIC PLAN

By enhancing efficiency, customer satisfaction and bringing more members on board, giant Fund is upbeat about attaining a value of Kshs. 1 trillion within the next five years

By George Gichuki

The National Social Security Fund (NSSF) has successfully launched its five year (2023 to 2027) corporate Strategic plan. This marks a significant milestone in the organization’s journey towards enhancing social security provision and fostering economic prosperity. NSSF offers a range of social security benefits, including retirement benefits, survivor benefits and invalidity benefits. Committed to excellence, the organization prioritizes the delivery of top-tier social security benefits to its members while ensuring its long-term sustainability for future generations.

Commitment

The chief guest during the launch was H.E Musalia Mudavadi, Prime Cabinet Secretary and CS, ministry of foreign and diaspora affairs. In his keynote speech, H.E Mudavadi said that the strategic plan underlines the commitment of the entire NSSF team, whose efforts have been instrumental in shaping the future of the organization in particular, and that of Kenyans at large. “I am sure this strategic plan will be a springboard for exponential growth of NSSF to the benefits of your members and Kenya as a whole,” he added.

The Prime Cabinet Secretary further noted that the strategic plan embodies the core values of member centrism, integrity, innovation and collaboration, aligning it to the government’s bottom-up economic transformation agenda (BETA).  “Beyond its function of mobilization of local resources for national development, NSSF actively invests in productive sectors such as its support for small and medium enterprises (SMEs), championing financial inclusion and reinforcing the stability of our financial systems,” he observed. “It is important to note that a central focus of NSSF’s strategic plan is a renewed dedication to expanding pension coverage and promoting financial inclusion for all Kenyans,” he added.  In that vein, initiatives by NSSF targeting informal sector savings plantailored specifically for market vendors, bodaboda operators, taxi and matatu operators, are crucial components of this effort.“ By providing affordable and sustainable retirement savings options, the goal is to ensure that every Kenyan has access to financial security in their later years,” he said.

The chief guest appreciated the fact that NSSF’s new strategic plan lays emphasis on the need to embrace technology given the fact that all the enhancements in the pipeline require the integration of information communication technology (ICT). “By leveraging the power of technology, NSSF can streamline processes, reduce costs and provide even greater value to its members and stakeholders,” he emphasized.

Pension coverage

However, he decried the low level of pension coverage in the country. According to the Kenya Bureau of Statistics, as of 2023, over 13.9 million adult Kenyans lacked retirement savings. “This low level of pension coverage poses a significant threat to the financial security and well-being of millions of Kenyans, both now and in the future,” the chief guest noted. “With an income replacement ratio upon retirement of just 40%, well below the recommended level of 75%, many retirees are finding themselves struggling to make ends meet in their golden years,” he added.

Hon. Florence Bore, CS, labour and social protection under whose docket NSSF falls lauded the organization for playing a pivotal role over the last six decades by providing a platform for workers in Kenya to save for their retirement.“Kenyan workers in the formal, informal, public and private sectors need an assurance of dignified lives after retirement characterised by ability to meet their basic needs from their savings during active years,” said Hon. Bore.  “This emphasises the critical role that the Fund plays not only in mobilization of domestic savings but in achievement of the Sustainable Development Goals which include reduction in old age poverty and dignifying Kenyans in their old age,” she added.

Securing the future

Hon. David Njeru, Chairman of NSSF Board of Trustees was upbeat about   this important development.  “The launch of the corporate strategic plan 2023-2027 signifies NSSF’s unwavering commitment to excellence and innovation. We are confident that this strategic blueprint will propel us towards achieving our vision of being the trusted social security provider, delivering exceptional value to our members,” he said.The Managing Trustee, David Koross along the same vein said:”Our strategic plan is not just a document; it’s a road map to a brighter future for all Kenyans. By focusing on member-centricity, technological advancement and financial inclusion, we are poised to revolutionize the social security landscape and ensure a secure and prosperous future for generations to come.”

The major highlights of the strategic plan

To start with, there is a commitment to growing the fund’s value to unprecedented heights, reaching a milestone of Kshs. 1 trillion. This achievement will not only secure the financial future of its members, but also solidify its   position as a leading force in the industry. Prioritizing investments in sectors promoting  grassroots development, such as agriculture, small and medium enterprises (SMEs), and rural infrastructure, will stimulate job creation, empower communities, and foster inclusive growth.

Secondly, since the members are at the heart of everything that NSSF does, their satisfaction is paramount. The Fund is therefore committed to surpassing the members’ expectations and achieving a customer satisfaction rating of notlessthan95%. This demonstrates   unwavering dedication to service excellence.

Thirdly, NSSF is planning to expand its reach and impact by welcoming one million new members into its fold. Each new member represents an opportunity to make a difference in someone’s life and strengthen the fabric of the organization. To accomplish this, the organization intends   to reach out to informal SMEs, the informal sector at large, Kenyans in the diaspora as well as refugees.

NSSF also appreciates that its employees are the driving force behind its success, and their satisfaction is integral to its ability to thrive. Therefore, by prioritizing employee well-being, fostering a culture of empowerment, recognition and fulfilment, the organization is aiming   for a satisfaction rating of no less than 95%.

Further, NSSF recognizes the importance of operational efficiency through digitization, automation and prudence. Therefore it is planning to reduce its costs to 1.5%, hence maximizing the value delivered to its  members while ensuring the sustainability of the organization for years to come.

Finally, by understanding the significance of providing competitive returns to its members, NSSF  will declare double-digit interest rates, hence   rewarding their trust and loyalty while ensuring their financial prosperity for years to come.

By and large, the launch of the NSSF corporate strategic plan – 2023-2027- marks a pivotal moment in the Fund’s collective efforts to redefine social security in Kenya.