Home Owners Get Title Deeds from NSSF

The National Social Security Fund (NSSF) has confirmed that a strategy to reduce its real estate portfolio to align with the national regulatory requirement is well on course.

As part of the strategic effort, NSSF has now stepped up the issuance of title deeds to homeowners who have purchased housing units through the funds Tenant Purchase Scheme (TPS) at both the Nyayo Estate and Hazina Estate housing complexes.

Speaking during a function to handover more than 200 title deeds to homeowners at the Kshs 40 Billion Hazina Estate housing complex, NSSF Acting Managing Trustee Tom Odongo confirmed that the fund is actively moving to ensure full compliance with the 30% real estate investments’ regulatory requirement.

Under the Retirement Benefit Authority’s regulations, fund managers are required to maintain a portfolio of less than 30% in real estate investments to ensure a liquidity balance.

“Handing over of such title deeds is one way of ensuring we comply with the 30% regulation as we officially transfer ownership to our TPS customers,” Odongo explained.

And added: “over the past few years, we have managed to reduce our Real Estate investments from 63% in 2004 to 32% last year to realign with the RBA requirement of 30% in order to lower illiquidity in the portfolio.”

In compliance with the RBA Investments guidelines and in a bid to ensure prudent investments of funds held by NSSF, Odongo said that the fund has managed to recruit and retain professional fund managers and custodians.

The Fund, he disclosed, is currently paying a return of 7.5% on member accounts and will continue improving the rate of return on its investments for the benefit of members.

Across its investment portfolio, NSSF has managed to achieve an average rate of return on investment of more than 14% compared with industry performance benchmark of 12%.

Over the years, NSSF has rolled out various Housing Schemes, which have benefited members, especially the sale of Hazina and Nyayo Embakasi Estate Housing Projects that have been sold through its innovative Tenant Purchase Scheme (TPS).

The Tenant Purchase Scheme perfected by the Fund has proved to be very successful with more than 6,000 individual homeowners enjoying TPS solutions.
During the title deeds handover ceremony, Odongo reiterated NSSF’s commitment to protect its members’ interests against legal threats.

“Our members should rest assured that NSSF shall at all times vigorously seek to protect the members’ investments,” Odongo assured.

And added: “In all our transactions, we have deliberately and strictly followed all legal considerations and directions to the latter as we seek to maintain our mandate to protect NSSF members interests.”

Press Release.

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