Kenya’s National Social Security Fund posted its strongest financial performance on record in FY2025, with members’ funds rising 43% to KSh 572.8 Bn, after adding KSh 172.6 Bn in a single year.
- •The expansion was driven by a sharp rise in member contributions and a surge in investment returns, lifting net investment income to KSh 105.3 Bn and total investment assets to KSh 558.0 Bn.
- •Member contributions rose 35% to KSh 83.97 Bn, from KSh 62.29 Bn in FY2024, supported by stronger compliance under the revised contribution framework.
- •Active membership increased 8% to 3.6 million, pushing average annual contributions per active member higher and reversing nearly a decade of stagnation, when collections had largely hovered between KSh 13 Bn and KSh 16 Bn.
Benefit outflows moved in the opposite direction. Benefits paid declined 10% to KSh 8.74 Bn, from KSh 9.71 Bn, as the number of claims fell by 11%, or 11,893 applications. The combination of rising inflows and lower payouts significantly strengthened net member cash flows, reinforcing the balance sheet before investment effects are considered.
Investment performance accounted for a large share of the FY2025 outcome. Net investment income jumped 152% from KSh 41.7 Bn the previous year, driven by both higher interest income and substantial valuation gains. The fund reported a 22% nominal return on investments, up from 12.02% in FY2024, translating into a strong positive real return after inflation and marking one of the best investment years in the fund’s history.
Portfolio data shows growth was concentrated in sovereign fixed income and listed equities. Treasury bond holdings increased by KSh 101.6 Bn to KSh 355.4 Bn, accounting for nearly 64% of total investment assets and underscoring the fund’s rising exposure to domestic interest rate movements. Eurobond holdings expanded sharply to KSh 34.3 Bn, from KSh 7.2 Bn, while quoted equities rose KSh 23.9 Bn to KSh 85.1 Bn. Property holdings were broadly unchanged at 35.4 Bn, while private equity and REIT allocations increased modestly, pointing to gradual diversification rather than a structural shift.
Operating efficiency improved despite higher scale. Administration and operating costs rose at a slower pace than assets, lowering the cost-to-assets ratio and indicating improved leverage as the fund grows. Liquidity also strengthened, with cash and deposits increasing alongside the expansion in investment assets.
On the liability side, accumulated members’ funds increased by KSh 103.6 Bn to KSh 457.3 Bn, while member reserve accounts rose sharply to KSh 110.3 Bn, reflecting higher allocations from the year’s surplus. Total member liabilities stood at KSh 572.8 Bn, broadly matched by total assets of KSh 575.1 Bn, maintaining a strong coverage position.
