The major challenges that the Fund encounters are employers’ non compliance and low coverage rate. In addressing the issue, the decentralization strategy was set to improve service delivery, reduce bureaucratic handling of claims, increase coverage rate and bring services closer to the people to ensure easy facilitation in the collection of contributions and benefits payments.

With the new practice of decentralization in place, compliance of employers has greatly improved due to sensitization and better service delivery collection of contributions has increased by 56.4 per cent, benefit claims processing time has reduced from two months to two weeks, total benefits pay outs increased by 12 per cent and the registration of clandestine employers in 2007 increased by 147.3 per cent compared to 2006. Above all, the practice is easy to implement.