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NSSF faces succession crisis with no employees under 30, majority above 50 years

NSSF offices along Bishop Road in Nairobi. (Photo:NSSF)

By Lucy Mumbi | Monday, May 20, 2024

The absence of younger workers poses a significant challenge for the institution grappling with a succession crisis.

The latest data from the National Social Security Fund (NSSF) has revealed that the agency has no employees below the age of 30.

According to the data, 675, or 61.8 per cent, of its 1,093 employees are aged 50 or older, with 19 being over the retirement age of 60.

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The absence of younger workers poses a significant challenge for the institution grappling with a succession crisis.

Of the remaining workforce, only 111 employees, or 10.2 per cent, are aged between 30 and 39, while 307 employees are between 40 and 49, indicating that many more will soon transition into the over-50 category.

“The analysis of the number of NSSF staff and distribution by age illustrates an ageing workforce. There is, therefore, a need for succession planning and replacement,” NSSF stated in its recently unveiled draft strategic plan.

The age distribution problem at NSSF highlights a broader issue faced by many government entities in Kenya, where the majority of the population is young and seeking employment.

Despite the existence of skill transfer policies in the public sector, many ministries, departments, and state-owned enterprises have struggled to implement them effectively.

Speaking during the launch of the draft strategic plan on May 7, 2024, Prime Cabinet Secretary Musalia Mudavadi urged Kenyans to save wisely to alleviate retirement fears.

He noted that the funds play a major role in the lives of all citizens, adding that the strategic plan has the interests of the people of Kenya. He called for the support of the plan to ensure that every Kenyan is socially protected.

“NSSF stands as a cornerstone of our nation's social and economic framework, providing financial security and stability to countless Kenyans nationwide. While ageing is beyond our control, we can all influence the quality of our retirement. I urge Kenyans to save wisely to alleviate retirement fears,” Mudavadi said.

The minimum recruitment age for public service in Kenya is 18, while the standard retirement age is 60. However, exceptions exist for people with disabilities and university lecturers, whose retirement ages are set at 65 and 70, respectively.

In 2017, the Public Service Commission (PSC) developed a succession planning management strategy to address challenges such as an ageing workforce and skills flight and brain drain, particularly in professional and technical areas.

The main goal of the PSC strategy was to trigger a proactive planning process by developing a pool of potential successors and encouraging a culture of knowledge transfer and employee development.