Retirement benefits expert Wilson Malaba has clarified the two special circumstances allowing NSSF contributors in Kenya to withdraw their savings before age 50. These instances involve permanent relocation abroad or invalidity from incapacity.
Contributors to Kenya's National Social Security Fund (NSSF) can access their retirement savings before age 50 in limited cases. Wilson Malaba, a retirement benefits expert, discussed this on KBC TV during an interview on Thursday, March 5, highlighting legal provisions for early withdrawal.
The first scenario arises when a member relocates permanently outside Kenya without plans to return for employment. “In situations where one is travelling out of the country permanently, they are allowed to access 100 per cent of their savings,” Malaba explained. Alternatively, the funds may transfer to a comparable social security body in the destination country, if available. “Those funds can alternatively be transferred to a similar body like NSSF in that country. If they do not have them, then you will just be able to access them plus the interest that they have earned,” he added.
The second case involves invalidity, where a contributor becomes physically or mentally incapacitated and unable to work. Such claims require medical certification from a qualified doctor. “A situation where one is either physically or mentally incapacitated, then this allows for funds to be accessed even before you get to 50 years. It has to be proved by a medical doctor,” Malaba stated.
Regarding married couples both contributing, Malaba noted that each is treated as an independent member. “When both of them can contribute to a scheme, they become separate members because they become separate policyholders,” he clarified. Couples may consolidate savings under specific conditions with approval from one party.
