National Social Security Fund (NSSF): Misleading Report on the Sale of NSSF Plot

Posted on 18 July, 2008

A local daily recently published a misleading report concerning the NSSF plot located along Nairobi's Kenyatta Avenue. We wish to clarify the following:

  • NSSF never received Kshs.140 million from the purported Kenyan company as claimed.
  • The offer of Kshs.1.4 billion came from Ms. Kaplan & Straton advocate, who did not disclose who their clients are; whether Kenyan or foreign.
  • The offer of Kshs.1.4 billion from Ms. Kaplan & Straton had the following terms:
    • 10% deposit of Kshs.140 million was to be paid to an escrow account. The money was to remain in the escrow account until completion and the interest accruing thereof paid to the purchaser instead of the Fund.
    • The balance of 90% was to be procured by way of a mortgage from an undisclosed bank. NSSF was to release the title document to enable the purchaser to negotiate the loan with the bank.
The above terms were not acceptable to NSSF, hence the offer was declined. The Fund referred the property to another purchaser for Kshs.1,375,000,000/= - this was the second highest offer.
  • The current purchaser paid 10% deposit directly to the Fund on 17th December 2007.
  • The balance of Kshs. 1,237,500.00 is held in an escrow account at CFC Bank, Museum Hill Branch in the joint names of the Fund and the purchasers' advocates.
We are committed to being diligent and transparent in conducting the business of the Fund in order to protect and secure the future of the Kenyan worker.

Finally, I would like to re-assure the media that NSSF operates an open door policy and they should not hesitate to contact the Managing Trustee or the Public Relations Manager on any matter of public interest.

Rachel Lumbasyo
Managing trustee
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