Business

NSSF recovers Shs8 billion from defaulters

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By Walter Wafula

Posted  Wednesday, May 4  2011 at  00:00
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Defaulters of the monthly National Social Security Fund contributions have paid up Shs8 billion in arrears since last December according to the commercial head of the Fund.

The payment by 250 institutions is part of the Shs40 billion due in the retirement benefits scheme from some 400 defaulters, Mr Steven Mwanje, the head commercial division at NSSF, told Daily Monitor in an interview on Monday.

Last year, the NSSF management gave defaulters a chance to clear arrears without paying the 10 per cent interest penalty on their due contributions. The pardon period ends on May 15, six months after it was launched.

The amnesty campaign has further increased the fund’s monthly collections to an average of Shs33 billion per month up from Shs27 billion per month, as of last year.
“We have achieved good results by engaging employers. If we had more paying with 10 per cent (penalty), it would be more,” Mr Mwanje, said.

He added that the increase in contributions will be reflected in the fund’s investments with a possibility of improving interest rates on contributors’ returns.

Members of the fund have risen to about 500,000 from about 420,000 last year. The members are workers of 9,600 institutions which subscribe to the fund as required by law.