Kenya’s National Social Security Fund (NSSF) closed the 2025 financial year with net assets rising by 43 per cent to Sh572.77 billion, reflecting one of the strongest growth performances in the fund’s recent history.
The increase followed a net addition of Sh172.63 billion during the year, nearly double the Sh88.02 billion recorded in the previous financial period.
The growth was underpinned by higher member contributions and a sharp improvement in investment performance.
According to the figures released on Monday, gross contributions receivable climbed by 34.8 per cent to Sh83.97 billion, while remitted contributions rose even faster, increasing by 38.5 per cent to Sh81.94 billion.
At the same time, unremitted contributions declined by 35.4 per cent to Sh2.03 billion, signalling improved compliance and collection efficiency.
Benefits paid to members fell by 10.1 per cent to Sh8.74 billion, down from Sh9.71 billion the previous year.
As a result, the net surplus from members rose by 43.1 per cent to Sh75.24 billion, providing a stronger base for reinvestment and long-term fund growth.
Investment performance was the standout feature of the year. Net investment income more than doubled, rising by 152.4 per cent to Sh105.30 billion from Sh41.70 billion in FY2024.
This surge was driven largely by fair value gains, which jumped dramatically to Sh46.06 billion from Sh2.99 billion, representing a rise of more than 1,400 per cent.
The improved performance lifted the fund’s return on investments to 22 per cent, compared with 12.02 per cent a year earlier.
The higher returns played a central role in expanding total investment assets, which grew by 43.2 per cent to Sh558.05 billion.
Government securities continued to dominate the investment portfolio. Holdings in government bonds rose by 40 per cent to Sh355.39 billion, reinforcing the fund’s preference for relatively stable, long-term instruments.
Exposure to quoted equities also expanded significantly, with holdings increasing by 39.1 per cent to Sh85.14 billion, reflecting both market gains and continued allocation to listed companies.
Cash and bank balances rose by 63.4 per cent to Sh3.59 billion, providing additional liquidity, although they remained a small proportion of the overall portfolio.
The growth across asset classes highlighted the broad-based nature of the fund’s expansion during the year.
Operating costs increased by 23.2 per cent to Sh8.46 billion, up from Sh6.87 billion, reflecting higher administrative and operational expenses as the fund expanded its activities.
Despite the rise, costs remained modest relative to the scale of asset growth and income generation.
Overall, the figures show a fund benefiting from a combination of stronger contribution inflows, lower benefit payouts, and favourable market conditions.
The sharp increase in fair value gains and investment income reaffirms the impact of valuation movements in bonds and equities on the fund’s financial position.
With total net assets now standing at Sh572.77 billion, the NSSF’s performance in FY2025 marks a significant step in strengthening retirement savings for Kenyan workers, while reinforcing the fund’s growing influence in domestic financial markets.
