| dc.description.abstract | The National Social Security fund was established in 1965 by an act of Parliament (Cap. 258
Laws of Kenya). The Fund was set up primarily to provide Financial Security to Kenyan workers in their old age. Initially the Fund operated as a department of the Ministry of Labour, until 1988 when it was converted to a State Corporation. The Fund’s mission is to provide Social Security and welfare support to workers. Its vision is to be an effective and dependable Social Security Provider to all Workers.
The objective of this study was to identify strategies that NSSF has used in response to environmental conditions.
Market liberalization from the government through the retirement benefits authority has led to increased competition from pension schemes providers. Post election violence effects such as slow economic growth have led to restructuring of companies where in some cases retrenchment of employees has led to reduction in contributions. Corruption of enforcement officers by employers has led to reduced contributions from employers who opt to corrupt NSSF enforcement officers in order for them to report lower earnings for them to make false contributions.
NSSF has a strategic plan which has a time frame of three years. The strategies that NSSF has embraced in response to the changing environment in the recent past are creating public awareness ofNSSF operations through mass media, developing quality objectives, publishing its annual accounts, pursuing ISO certification, staff training, increasing its market share by voluntary membership recruitment, investing in information technology, research and introduction of new products, customer focus and satisfaction, moving towards compliance with regulatory body, and sponsoring motion of change from a ministry department to a parastatal. NSSF ensures that the employees are involved in the realisation of strategic
change. The change effort at NSSF is initiated mainly by the top management namely the board of trustees, management team and departmental heads. The institution has short term targets and monitors their implementation through the use of performance contracts and follow up activities geared at ensuring that targets for contributions are met within the stipulated time frames. The current structure ofNSSF (in terms of flexibility) was described
as fixed structure in that every department has functions and role clearly define, top to bottom command line, while others felt that it did not apply since what thrives is tribalism.
The NSSF is driven by corporate goals and objectives mainly the NSSF Act which is the core guiding document.
As a result of the changes recently experienced in the operating environment, the institution has embarked on aggressive marketing, improved financial management, recruitment of members from the informal sector of the economy and customer focused service delivery.
On the overall position of NSSF after changes in the external environment is seen as rigid and ready to face competition from pension schemes providers. Financial management has improved and the corporate image is also changing tremendously. However it was felt that a
change in the top management would go a long way in improving the operations of NSSF. | en |
