NSSF intends to sue all debtors 2017

The NSSF Director-General, Prof Godius Kahyarara.

What you need to know:

  • In July, minister of State in the Prime Minister’s Office (Policy, Parliament, Labour, Employment, Youth and the Disabled) Jenista Mhagama issued a seven-day ultimatum to debtors to repay what they owed the NSSF, but not much has been done. The minister asked every institutions who is indebted to NSSF, regardless of their titles, including politicians, to pay up.

Dar es Salaam. The National Social Security Fund (NSSF) intends to sue government institutions, individuals and private companies for failing to repay their debts.

In July, minister of State in the Prime Minister’s Office (Policy, Parliament, Labour, Employment, Youth and the Disabled) Jenista Mhagama issued a seven-day ultimatum to debtors to repay what they owed the NSSF, but not much has been done. The minister asked every institutions who is indebted to NSSF, regardless of their titles, including politicians, to pay up.

The NSSF Director-General, Prof Godius Kahyarara (pictured below), told The Citizen recently after a press conference that some individuals, the government and private institutions that had taken loans to buy houses were yet to clear their debts. Debtors are said to owe NSSF Sh20 billion and $1.2 million (about Sh2.6 billion in the current exchange rate) in unpaid dues.

According to him, the NSSF is still making follow-ups to ensure all debtors pay what they owe the fund. However, Prof Kahyarara added, those who won’t pay their debts by early next year they would be taken to court.

“We have issued warning and notification letters to several ministers, companies and individuals reminding them to pay up. Some have responded, but others haven’t done anything to date,” he said.

Prof Kahyarara explained that it was tricky to establish the actual amount collected so far because there was also a penalty charged, but the entire debt amounted to over Sh20 billion.

He explained that at the moment the exercise to collect debts was going on well although most of the debtors had been complaining about financial hardships caused by the cost of living.

According to reports, Prof Kahyarara said although NSSF had made great strides in implementing various projects, its efforts were partly being thwarted by debtors.

In view of this, he said the debts tenants owed NSSF amounted to Sh20 billion and further $ 1.2 million. Another Sh86 billion, which is part of the statutory contributions and penalties from employers, was also yet to be cleared.