Kenya’s National Social Security Fund (NSSF) is positioning itself at the forefront of a transformative investment strategy that sees pension schemes turning to infrastructure projects for more secure and higher returns. The shift comes as traditional investments yield lower margins and global credit conditions tighten, particularly for African countries.
NSSF has shown interest in investing in the 175-kilometre Nairobi-Nakuru-Mau Summit Highway, a toll road project currently at the tendering stage. The highway, which is expected to be constructed under a Public-Private Partnership (PPP) model, presents a compelling opportunity for long-term revenue generation and socio-economic impact.
Speaking at the International Social Security Association (ISSA) continental technical seminar held in Nairobi, NSSF Managing Trustee David Koros emphasized that pension schemes need to adopt emerging investment avenues such as infrastructure, agriculture, and health. He noted that such investments not only guarantee better returns for pensioners but also contribute to national development by filling funding gaps created by reduced donor and multilateral lending.
“Investing in infrastructure is not just financially prudent; it is a way to participate in Kenya’s economic growth,” Koros said. “The Nairobi-Nakuru-Mau Summit Highway, once operational, will provide a steady revenue stream through tolls, ensuring better returns for pensioners.”
This approach is part of a broader strategic plan by the NSSF to double its investment portfolio from the current Ksh 500 billion to Ksh 1 trillion in the medium term. The fund has also been undertaking major reforms aimed at improving efficiency and transparency.
One of the key milestones includes reducing the pension payment processing time from an average of 76 days to just 10 days, with the goal of achieving a one-day turnaround.
As governments across Africa increasingly promote the PPP model to deliver large-scale infrastructure projects without overburdening taxpayers, pension funds are emerging as reliable sources of domestic capital. With the NSSF leading the charge in Kenya, the move signals a promising future for both pensioners and national development.
