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The National Social Security Fund (NSSF) plan to develop a mixed-use property on its prime 3.8-acre land in Nairobi’s central business district is a promising initiative for the fund.

For decades, this parcel, located at the corner of Uhuru Highway and Kenyatta Avenue, has remained dormant, representing the untapped potential of stakeholders’ investments.

The decision to implement this project using the Engineering, Procurement, Construction, and Finance (EPC+F) model signals a forward-thinking approach. Under this model, contractors are responsible for the entire process — from design to financing — reducing the upfront financial burden on the Fund.

Ideally, this development should generate significant returns, offering long-term benefits to contributors relying on the NSSF for retirement security. However, history has shown that such projects must be approached with caution to avoid pitfalls that have previously undermined the Fund’s investments.

Over the years, the NSSF has faced numerous challenges with its investment projects, many of which failed to deliver anticipated returns or experienced delays and mismanagement. A notable example is the Nyayo Estate housing project. While it eventually provided housing solutions, it was plagued by prolonged delays and cost overruns that strained public confidence. The Hazina Trade Centre project was envisioned to include a 39-story skyscraper but stalled for years due to contractor disputes and litigation. Such setbacks not only erode the Fund’s financial stability but also shake the trust of contributors who depend on these investments for their future.

These historical challenges underscore the critical need for transparency and accountability in NSSF’s decision-making processes. While the EPC+F model offers structural advantages, including a reduction in the financial risks borne directly by the Fund, it is not a guaranteed safeguard against mismanagement or inefficiencies. For this to succeed, NSSF must ensure that every aspect of the project is handled with the utmost professionalism and integrity.

Contractor selection must be a transparent and competitive process. Delays and cost escalations, as seen in past projects, should be avoided through careful planning and diligent execution. The fund must also prioritise independent audits and regular reporting throughout the project life cycle.