NAIROBI, Kenya – Kenya’s pension fund assets have for the first time crossed the Sh2 trillion mark, buoyed by increased National Social Security Fund (NSSF) contributions and strong investment returns in 2024, official data shows.
The Retirement Benefits Authority (RBA) reported that total pension assets hit Sh2.207 trillion as of December 2024, reflecting a sharp 27.9 percent rise from Sh1.725 trillion recorded in the previous year.
The milestone underscores the growing strength of Kenya’s retirement benefits sector, driven in large part by the phased implementation of the NSSF Act, 2013, which significantly raised monthly contributions.
“The growth in assets witnessed within the period emanated from contributions and investment income, each taking a 50 percent split,” the RBA said in its latest industry brief. “The increased contributions from members during the period are mainly attributable to the enhanced NSSF contributions that moved to year three of implementation.”
The Act, which had faced a decade-long delay due to legal battles, was finally rolled out in 2023.
The first phase saw monthly deductions increase from Sh400 to Sh2,160 in 2024, and further to Sh4,320 in February 2025—Sh2,160 each from both employer and employee.
These higher contributions saw NSSF’s total assets grow by Sh77.71 billion over just six months, closing December 2024 at Sh478 billion—an 18.9 percent jump from Sh402 billion in June.
NSSF contributions more than doubled in the same period, rising to Sh59.25 billion from Sh25.39 billion a year earlier, marking a 2.3-fold increase.
In addition to higher inflows, the pension industry also reaped significant investment returns, particularly from government securities and listed equities.
Rising interest rates boosted government bond yields, leading to a 46 percent jump in returns from that asset class.
Quoted equities, which had slumped earlier in the year, rebounded strongly in the final quarter, posting a 42 percent rise.
The top five asset classes—government securities, guaranteed funds, quoted equities, listed corporate bonds, and immovable property—accounted for 94.82 percent of total investments.
NSSF’s own portfolio closely mirrored this mix, with 67 percent of its assets held in government bonds, 14.28 percent in listed shares, and 7.43 percent in property.
The RBA expects pension assets to continue their upward trajectory this year, supported by ongoing contribution increases and a favorable investment climate.
Still, the sector faces persistent headwinds, including delayed remittances by public institutions and growing concerns over retirement income adequacy.
As of late last year, unremitted pension contributions had surged to Sh57 billion, putting pressure on the long-term financial security of retirees.
