The National Social Security Fund (NSSF) booked paper gains of Sh46.06 billion on its investment portfolio in the year to June 2025, a sharp rise from Sh2.98 billion the previous year, as rising market prices lifted the value of its bond and equity holdings. The gains reflect fair value adjustments on assets such as government securities, shares and property that remained on the fund’s books and have not yet been sold.
These valuation gains are unrealised until the assets are disposed of. Combined with a jump in investment income to Sh55.8 billion from Sh39.6 billion, the revaluation windfall helped NSSF post a 152 percent surge in net investment income to Sh105.3 billion, potentially setting the stage for improved returns to members. Over the same period, the fund’s total net assets climbed to Sh572.77 billion, up from Sh400.2 billion a year earlier.
In disclosures published in the Kenya Gazette, NSSF said it achieved a 22 percent return on investment in the 2025 financial year, compared with 12.02 percent in June 2024, representing an 83 percent increase. The fund invests across equities, property, fixed deposits and offshore assets, but its biggest exposure remains long-term government bonds.
The value of NSSF’s bond portfolio rose to Sh355.39 billion by June, an increase of Sh101.6 billion from Sh253.8 billion over the year. This uplift was driven by a combination of fresh purchases in the primary market and price appreciation in the secondary market at the Nairobi Securities Exchange on bonds already held.
Also Read: Airlines Divert Flights to JKIA as Wilson Airport Upgrades Begin
Bond prices rallied after the Central Bank of Kenya cut its policy rate to nine percent from 13 percent in August 2024, lowering yields on new issues and making older, higher-yielding bonds more attractive. Because bond prices and yields move in opposite directions, demand for these older securities pushed prices higher, allowing sellers to fetch premiums.
Across the market, investors realised profits of Sh176 billion from bond trades worth Sh2.71 trillion, equivalent to a seven percent return on the face value of Sh2.53 trillion. The equities market also delivered strong gains, with investor wealth rising by 51.8 percent, or Sh1 trillion, to Sh2.94 trillion in 2025. Major institutional investors such as NSSF benefited from the surge.
At the Nairobi bourse, blue-chip stocks including Safaricom, KCB Group, EABL and Equity Group were the main drivers of the valuation gains, recording share price increases of between 30 percent and 65 percent. NSSF also had more cash to deploy after member contributions rose sharply to Sh81.9 billion in the year to June 2025 from Sh59.14 billion in 2024, following higher statutory deductions.
Contribution rates were increased from February 2023 after the NSSF Act 2013 came into force following a decade-long legal dispute. Monthly contributions rose from Sh200 to Sh1,080 in the first year, matched by employers, then to Sh2,160 from February 2024 and Sh4,320 from February 2025. The cap will rise again to Sh6,480 this month and reach Sh8,640 per month in 2027.
