NAIVASHA, Kenya – The National Assembly has piled pressure on the National Social Security Fund (NSSF) to waive Sh102 million in penalties and interest arising from delayed remittance of pension contributions for former Members of Parliament, making the concession a condition for considering proposed amendments to the NSSF Act.
Lawmakers argued that the penalties were excessive and unjustified, noting that Parliament has already settled the principal amount of Sh24.8 million deducted from former MPs but remitted late.
National Assembly Speaker Moses Wetang’ula told NSSF Managing Trustee David Koross that the House would only engage with the fund’s legislative proposals if the fines were scrapped.
“There were unpaid dues of Sh24.8 million that had attracted interest of Sh102 million. I instructed the Clerk to pay the principal, and if you are looking for Sh102 million in penalties, it must be a quid pro quo,” Wetang’ula said.
He added that the law allows NSSF to waive penalties and interest, urging the fund to make a commitment immediately.
“These are unfair penalties and interests. Can you, here now, give us a commitment that you will waive the penalties given that we paid the principal as a responsible institution?” the Speaker asked.
Koross, speaking during the 2026 Legislative Retreat in Naivasha, said requests for penalty waivers are assessed on a case-by-case basis but signalled willingness to accommodate Parliament.
“Let me engage the Clerk; the answer is positive. It is an issue of formality that needs to be followed up on. It is doable, we will do it,” he said.
Ugenya MP David Ochieng, who chaired the NSSF session, underscored Parliament’s position, telling the fund to clear the issue before tabling any amendments.
“Before you bring amendments to Parliament, make sure you waive the penalties and interest,” Ochieng said.
Beyond the penalty dispute, Koross used the forum to push for wide-ranging reforms to the NSSF Act, 2013, including extending the tenure of the NSSF board and managing trustee from three to five years.
“Three years is a short period to undertake any meaningful project; five years is adequate time to do something,” he said.
Koross also flagged structural challenges within the fund, particularly the tiered contribution system, which he said complicates benefit access for contributors.
“The bulk of the money is in Tier 2, which can go anywhere through members exercising an opt-out. This creates untidiness and makes it difficult for contributors to collect their benefits,” he noted.
To streamline operations, NSSF is proposing a single-tier contribution system, allowing all voluntary savings to fall under the Provident Fund.
The fund also wants the law amended to allow members who lose their jobs to withdraw up to 50 per cent of their benefits, and to introduce a funeral grant for voluntary contributors.
In addition, Koross urged Parliament to approve four pending regulations, saying they are critical to the full implementation of the NSSF Act.
