CEO: Pensioners' funds safe in NSSF Twin Towers project

The experience of stalled mega projects informed the decision by the National Social Security Fund (NSSF) to change procurement mode for its Sh39 project, the Star has learnt.

The fund says it adopted the Engineering, Procurement, and Construction (EPC) plus Financing method as opposed to picking a contractor on open tender.

NSSF Managing Trustee David Koros told MPs on Thursday morning that the strategy ensures not only a more qualified bidder is picked by a contractor with sound financial muscle to undertake the project to completion.

In the past, Koros said the Fund suffered losses after some contractors upon being awarded tenders, get paid the 10 per cent mobilisation fees but fail to start the project or complete them.

“Mr Chairman, the fund adopted the EPC plus Financing so as to insulate pensioners from any losses emanating from contractors who are not able to deliver. We learnt this from past experiences,” he told the Emmanuel Wangwe Public Investments Committee (PIC) on Social Services.

Koros told the MPs that the mega project which will be a 60-storey twin towers will cost Sh39 billion and that the fund will only pay the contractor, China Road and Bridge Construction (CRBC), based on key milestones.

“Unlike in other contracts where we mobilise funds, the contractor is expected to raise his own funds and will only be paid based on certificates raised for work completed and certified,” he said.

Koros and his senior managers appeared before PIC to respond to audit queries contained in the 2024-25 financial year. Auditor General Nancy Gathangu had questioned the land ownership documents for four parcels of the land situated in the CBD.

“The ownership of the land is not in dispute as it is registered in the name of the fund. If you look at the report, it questioned the four titles but we have since amalgamated them to have one title. The separate titles do not exist anymore,” he said.

The NSSF Twin Towers project, to be developed at the junction of Uhuru Highway and Kenyatta Avenue, will see the fund transform it to a landmark mixed-use skyscraper.

Once completed, Tower A will rise to 60 storeys, about 260 metres, making it the tallest building in East and Central Africa.

Tower B will stand at 35 storeys, about140 metres. The complex will host premium office space, a business hotel, serviced residential apartments, retail outlets and conference facilities, alongside an observation deck on the 56th floor and parking for about 1,150 vehicles.

During the appearance before PIC, Koros told MPs that NSSF hopes to overtake Uganda’s NSFF as the region’s biggest pension fund.

“In the next two years, we hope to grow and become the region’s biggest fund overtaking both Uganda and Tanzania,” he said adding that NSSF portfolio currently is valued at around US$7 billion compared to Uganda’s which is about US$10 billion.

As part of its growth, Koros said the fund is diversifying its investments to cover social projects such as the Rironi-Mau Summit Road project which is being done on PPP model.