Pledging of pension benefits

I work for a private company and contribute to the National Social Security Fund. I took a personal loan from a savings and credit cooperative society popularly known as a SACCOS and pledged my pension benefit as a security for the loan. Am I allowed to do that and Is this contract valid in law?
PP, Dar

It is interesting that you are asking this question after you secured the loan through this pledge! Hopefully your intention is not to not pay this loan.

Section 20 and 52 of the NSSF Act makes the pension accruing to the employee inalienable. Hence pension benefits, owing to their nature, are not liable to attachment to pay the pensioner’s debt. Any security, pledge or assignment which purports to include pension benefit or contribution due from the employer or employee to the Fund is void.

However, there are two situations where pension benefits can be attached. One is where the pension entitlement is used as collateral for home mortgage for a member who has not attained the age of retirement. Two, is where the employee is convicted of an offence involving dishonesty and the convicting Court is satisfied that the employer has suffered financial loss as a result of that offence. In such a situation, the Court may order the compensation to the employer to be paid out of the employee’s pension benefit entitlement provided that the total compensation to the employer does not exceed the total employee’s share contributed to the Pension Fund.