Fresh concerns have emerged over how the National Social Security Fund (NSSF) handles staff allowances, following the Auditor-General’s discovery of Ksh 21.2 million in irregular payments made outside approved public service rules.
In the latest audit, the Auditor-General reviewed staff costs amounting to Ksh 5.66 billion and found that several employees were paid acting and special duty allowances without proper authorisation.
The report shows that Sh6.5 million was paid in acting allowances, while Ksh 14.7 million went to officers on special duty. These payments were made to employees who served in those roles for periods exceeding six months without approval from the NSSF Board.
Public Service Commission rules and NSSF’s own human resource policies are clear that acting appointments should last no less than 30 days and no more than six months, unless formally approved by the board. The audit found that these requirements were not followed.
As a result, the Auditor-General concluded that NSSF management acted unlawfully. “In the circumstances, Management was in breach of the law,” the report states.
The audit further raised concerns about weak internal controls at the Fund, particularly in staff deployment, approval processes and payroll management.
The Auditor-General warned that such gaps could lead to continued misuse of public funds if corrective action is not taken.
NSSF is a key public institution, managing retirement savings for about 3.6 million active members and serving more than 77,000 employers across the country.
By the time the audit report was released, NSSF management had not publicly responded to the issues raised or outlined steps taken to recover the funds or prevent similar breaches in the future.
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