NSSF Discloses Billions Tied Up in Dozens of Land, Tax Disputes

The National Social Security Fund(NSSF) sits at the centre of dozens of unresolved court cases and arbitrations that together run into the tens of billions of shillings, even as the state pension scheme reported a sharp expansion of its asset base in the year to June 2025.

• •The fund’s latest audited financial statements show total assets rising to KSh 575.1Billion, up from KSh 402.2Billion a year earlier, driven largely by heavier investment in government securities, Eurobonds, and listed shares.
• •Behind that growth, however, lies a long tail of legal disputes, many stretching back more than a decade, whose outcomes remain uncertain and whose financial impact would ultimately be borne by members.
• •The scale of these disputes matters because the fund has little room for error with member liabilities total KSh 572.8bn, almost matching total assets.

The biggest potential upside sits outside the balance sheet. NSSF estimates KSh 11.62Billion in contribution penalties owed by employers who remitted payments late. The amount is not recognized in the accounts, with the fund citing uncertainty over recovery timelines. Efforts are ongoing through court action, alternative dispute resolution, and intergovernmental channels, particularly for defunct local authorities.

A clearer recovery relates to tax with the fund being owed KSh 904.9Million by the Kenya Revenue Authority following a High Court judgment delivered in 2016. The pensioner says the taxman has acknowledged the refund, though the cash had not been received by the reporting date.

Land disputes remain a persistent feature. The fund continues to contest title revocations over land acquired years ago in gazetted areas, including parcels in Karura and Ngong forests valued at more than KSh 965Million. In another case, the fund is appealing against the cancellation of title to land in Mlolongo valued at KSh 27million, which hosts a government weighbridge. In Mombasa, ownership of Hazina Plaza, a landmark commercial building bought for KSh 450Million, is being challenged through a complex leasehold dispute involving the original lessors and multiple sub-lessees.

On the other side of the ledger, construction disputes pose the largest financial risk. Mugoya Construction is pursuing claims of KSh 7.06Billion linked to the stalled Nyayo Embakasi housing project, while NSSF has counterclaimed KSh 9.87Billion. The matter remains stuck in arbitration.

Another case involves Centurion Engineers over refurbishment works at Social Security House, where claims escalated from hundreds of millions of shillings to several billions before hearings closed in mid-2025. An arbitral award is awaited.

Tenant disputes add to the exposure with Nakumatt Holdings seeking KSh 2.2Billion in damages, alleging disruption of business at Hazina Trade Centre, while the fund has counterclaimed for unpaid rent and related losses. Several smaller cases, ranging from employment disputes to professional fees and historic land sales, remain before the courts.

Treasury bonds now account for KSh 355.4bn, about 62% of the portfolio, while quoted equities stand at KSh 85.1bn and eurobonds at KSh 34.3bn. Cash holdings of KSh 3.6bn represent less than 1% of total assets.

Contingent assets

Contingent liabilities