Kenya’s National Social Security Fund delivered its strongest financial results to date in FY2025, with members’ funds rising 43% to KSh 572.8 billion after adding KSh 172.6 billion over the year.
The expansion was fuelled by a sharp increase in member contributions alongside a surge in investment returns. Net investment income climbed to KSh 105.3 billion, while total investment assets grew to KSh 558.0 billion.
Member contributions increased by 35% to KSh 83.97 billion, up from KSh 62.29 billion in FY2024, supported by improved compliance under the revised contribution regime. Active membership rose by 8% to 3.6 million, lifting average contributions per active member and reversing nearly a decade of flat collections, which had largely remained between KSh 13 billion and KSh 16 billion annually.
Benefit payments moved lower during the year. Total benefits paid fell by 10% to KSh 8.74 billion from KSh 9.71 billion, as claims declined by 11%, or 11,893 applications. The combination of stronger inflows and reduced payouts significantly improved net cash flows to members, strengthening the fund’s position even before investment gains are taken into account.
Investment performance was a major driver of the FY2025 outcome. Net investment income surged 152% from KSh 41.7 billion the previous year, supported by higher interest income and sizeable valuation gains. The fund posted a nominal investment return of 22%, up from 12.02% in FY2024, delivering a robust positive real return after inflation and marking one of the strongest investment years in NSSF’s history.
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Portfolio data shows growth was concentrated in government securities and listed equities. Treasury bond holdings rose by KSh 101.6 billion to KSh 355.4 billion, representing nearly 64% of total investment assets and highlighting increased exposure to domestic interest rate movements. Eurobond holdings expanded sharply to KSh 34.3 billion from KSh 7.2 billion, while quoted equities increased by KSh 23.9 billion to KSh 85.1 billion. Property investments were broadly unchanged at KSh 35.4 billion, while private equity and REIT allocations recorded modest growth, signalling gradual diversification rather than a fundamental shift in strategy.
Operating efficiency improved despite the fund’s larger scale. Administrative and operating costs grew more slowly than assets, reducing the cost-to-assets ratio and indicating stronger operating leverage. Liquidity also improved, with higher cash and deposit balances alongside the expansion in investment assets.
On the liability side, accumulated members’ funds increased by KSh 103.6 billion to KSh 457.3 billion, while member reserve accounts rose sharply to KSh 110.3 billion, reflecting higher allocations from the year’s surplus. Total member liabilities stood at KSh 572.8 billion, closely matched by total assets of KSh 575.1 billion, preserving a solid coverage position.
