Three investment firms earned a combined Sh1.09 billion in management fees for handling externally managed assets of the State-run National Social Security Fund (NSSF) in the year ended June 2025, according to the fund’s latest disclosures.
The payments went to GenAfrica Asset Managers, African Alliance Kenya Asset Management, and Co-optrust Investment Services, which together oversaw Sh517.96 billion of NSSF’s investment portfolio. The payout marked a 59.8 percent increase from the Sh686.88 million paid out the previous year, reflecting the sharp growth in NSSF’s assets following higher statutory contributions introduced under the NSSF Act 2013 in February 2023 after years of litigation.
Data published in the Kenya Gazette shows NSSF’s total investment assets rose to Sh588.05 billion by June 2025, up from Sh389.71 billion a year earlier. Of this amount, Sh517.96 billion was managed by the three external fund managers, while Sh40.08 billion was handled internally by the fund.
The fees paid translate to an average management charge of 0.21 percent, slightly higher than the 0.2 percent charged in June 2024, when external managers were overseeing Sh348.7 billion in assets.
Figures from the Retirement Benefits Authority (RBA) indicate that GenAfrica held the largest share of externally managed NSSF assets at Sh177.78 billion as of June 2025, narrowly ahead of Co-optrust Investment with Sh177.3 billion, while African Alliance managed Sh162.88 billion.
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NSSF typically appoints external fund managers on three-year contracts, subject to annual performance reviews. A mid-2024 review saw Old Mutual Investment Group, Sanlam Investments East Africa, and CIC Asset Management dropped from the roster, with their portfolios redistributed among the remaining managers. At the time of their exit, Old Mutual was managing Sh62.35 billion, Sanlam Sh36.18 billion, and CIC Sh37.43 billion.
Following the reshuffle, Co-optrust Investment emerged as the biggest gainer, with its NSSF-managed assets increasing by Sh113.3 billion in the year to June 2025. GenAfrica’s allocation rose by Sh106.9 billion, while African Alliance saw an increase of Sh84.97 billion. The growth was further boosted by higher member contributions, which climbed to Sh81.9 billion in the year to June 2025 from Sh59.14 billion in 2024.
Overall, NSSF’s net assets rose to Sh572.77 billion in June 2025, compared with Sh400.2 billion the previous year. The enhanced contribution regime entered its fourth year this month, raising the maximum individual contribution to Sh6,480 from Sh4,320 last year. With contributions continuing to rise, the expanding asset base is expected to translate into even higher management fees for the contracted fund managers in the coming years.
