By TWV Team
A petition filed by Mr Francis Awino at Milimani Law Courts in Nairobi seeks to declare the tenure of National Social Security Fund (NSSF) Managing Trustee David Koross unlawful and unconstitutional, citing alleged financial irregularities totalling Sh26 billion.
Awino accuses Koross of misappropriating, irregularly spending, or failing to account for these funds during his tenure, with specific claims including Sh9 billion in non-performing investments, Sh4.3 billion in dubious land deals, Sh2.1 billion in unlawful procurement contracts, and Sh2.5 billion tied to stalled or non-existent projects like the Hazina Trade Centre. Additional allegations involve Sh215 million in unrecovered advance payments, Sh541 million in rent arrears, and Sh9.5 billion in unremitted member contributions.
Awino’s petition demands a forensic audit and lifestyle investigation of Koross by the Ethics and Anti-Corruption Commission (EACC) and a permanent ban on Koross holding public office. Court documents reference the Auditor-General’s report for the financial year ending 30 June 2023, which flagged Sh17.9 billion in irregularities at NSSF, including non-performing investments, illegal procurements, and weak internal controls. The petition also highlights unresolved audit queries, violations of the Public Procurement and Asset Disposal Act, and issues like Sh12.5 million in questionable travel payments and unrecovered advances for the Embakasi Phase VI Project.
Further claims point to mismanagement in Kisumu, where NSSF properties lack formal lease agreements, allowing squatters to operate businesses without documentation, leading to revenue losses. Awino also cites Koross’s September 2023 appearance before the National Assembly’s Public Investments Committee, where he faced scrutiny over Sh16.6 million in unrecorded income from East African Breweries Ltd bonds and Sh541 million in outstanding rent arrears. Additionally, Sh942 million in member contributions languishing in suspense accounts due to poor digitisation and reconciliation processes was raised as a concern.
The petition links Koross to prior allegations of bribery and unethical conduct during his time as CEO of LAPFUND. This high-profile case is set to spark renewed debate over governance and accountability in Kenya’s pension fund management, with implications for the NSSF’s oversight of millions of Kenyans’ savings.
