Africa-Press – Kenya. Pensioners saving with the National Social Security Fund (NSSF) will earn the highest-ever interest of 17 per cent on their savings for the financial year ended June 30, 2025, up from 11 per cent last year.
The declaration — which will directly boost retirement savings for millions of Kenyan workers — reflects the Fund’s robust performance and expanding asset base.
Speaking during the Fund’s 8th Annual General Meeting (AGM) in Nairobi, the chief guest, Prime Minister Musalia Mudavadi, praised NSSF for defying a tough economic environment to record one of its strongest performances to date.
During the year, member contributions rose by 35 per cent to Sh84 billion, while total assets grew to approximately Sh575 billion, representing growth of over 43 per cent.
Investment income more than doubled, delivering a gross return of about 22 per cent, with operating costs maintained at around 1.47 per cent, within the statutory limit.
Net investment income — a key driver of returns for savers — rose sharply to approximately Sh105.3 billion, up more than 150 per cent from the preceding year.
Management attributed these gains not only to enhanced contributions but also to valuation gains on bonds and equities, as global and local markets rallied over the period.
“It is now my distinct pleasure to declare an interest of 17 per cent on the NSSF members’ savings for the last financial year. This is the highest return in the history of NSSF. Now that we have set the bar, we expect that next year’s returns will be even higher,’’ Mudavadi said.
David Kariuki, NSSF chairman, attributed the strong performance to disciplined execution of the corporate strategic plan, which focused on better service, financial sustainability, operational efficiency and organisational resilience.
“The Fund is on course towards becoming a trillion shilling fund, while remaining firmly anchored on good governance and accountability,’’ he said.
NSSF managing trustee, David Koross, highlighted improvements in service delivery, driven by digitization, improved benefit payment processing period to about 10 days, down from 89 days, as contributors to the strong performance.
Additionally, the Fund received an unqualified audit opinion, reinforcing transparency and accountability.
The state pension fund currently serves 3.6 million active members and more than 77,000 employers, with growing participation from public servants and informal sector workers through initiatives such as Haba Haba.
Speakers at the AGM emphasized that every shilling saved through NSSF is both a “seed of future security” for the member and part of a national savings pool that finances jobs, housing and development across the country.
A standout highlight of the AGM was the spotlight on infrastructure investment, particularly the Fund’s stake in the Rironi–Mau Summit Road project.
Under a public-private partnership (PPP) arrangement, NSSF is co-investing alongside the China Road and Bridge Corporation, with forecasts indicating annual returns of up to 18 per cent over the life of the concession — a multi-decade revenue stream tied to toll collections along this critical Northern Corridor arterial route.
The move to infrastructure reflects a strategic shift toward long-dated, yield-enhancing assets that match pension liabilities and diversify beyond traditional fixed-income and equity holdings.
NSSF trustees emphasized that such assets can deliver “stable, predictable returns while driving national development.”
For contributors — employees and employers across the formal and informal economy — the higher interest rate translates to significantly larger pension savings balances over time, boosting retirement security in an environment where formal retirement savings coverage remains low.
The Fund’s leadership signaled confidence that, with continued disciplined contribution enforcement, prudent investment, and careful risk management, NSSF is well placed to sustain competitive returns while balancing liquidity needs and long-term obligations.
