Atwoli: Kambi exit left NSSF without board

From left: Businessman Khueima Mamujee, Central OrganIsation of Trade Unions Secretary General Francis Atwoli and Deputy Secretary General Benson Okwaro at St Stephen’s Cathedral, Nairobi, during Cotu Labour Day prayers Sunday. [PHOTO: DAVID NJAAGA/STANDARD]

 

NAIROBI: The National Social Security Fund (NSSF) has no legal board of trustees after the exit of Labour Cabinet Secretary Kazungu Kambi, Central Organisation of Trade Unions, (Cotu) Secretary General Francis Atwoli has said.

In a statement Sunday, Mr Atwoli said NSSF cannot legally sign deals without a properly constituted board of trustees, and warned that the situation is likely to embolden corrupt individuals keen to siphon billions of shillings from the the institution.

"A new board should be constituted as soon as possible through proper consultation with all stakeholders because it is dangerous for NSSF to operate  without a board," he said.

Mr Kambi stepped aside after he was named on a list of individuals under investigation by the Ethics and Anti-Corruption Commission (EACC) submitted by President Uhuru Kenyatta to both houses of Parliament.

Atwoli said the new National Health Insurance Fund (NHIF) deductions should not be pegged on workers' gross salaries but on their basic pay otherwise it would be unfair.

The Federation of Kenya Employers (FKE) is unhappy over the lack of clarity on the deductions, warning that the gazette notice on the same does not make clear what amounts to deduct from a workers' gross income since this varies, and deductions are always pegged on basic pay.

The employers' body said last week it supports NHIF's new rates, but would seek a meeting with NHIF to get a clarification.

Atwoli said preparations for Labour Day celebrations, which coincide with Cotu's 50th Anniversary, are in high gear. He said the Government should increase the minimum wage.

EACC is investigating Kambi over allegations that the cost of a housing project in Tassia, Nairobi was inflated to Sh5 billion.

He is also being probed over a decision by the NSSF board to award a Sh130 billion tender for two projects without competitive tendering in breach of procurement regulations.