NSSF to Cut Exposure to Government Securities And Boost Other Investments

By Robai Ludenyi,

Kenya’s retirement savings giant, the National Social Security Fund (NSSF), is planning a major shift in how it invests workers’ money. The fund now wants to limit the amount it puts into government securities to 60% of its total assets.

For years, NSSF has heavily relied on Treasury bonds and bills issued by the Government of Kenya. These government papers are considered safe and predictable, which is important when you are managing the hard-earned savings of millions of Kenyan workers. However, too much of the fund’s money has been tied up in these instruments.

Under the new plan, government debt will account for no more than 60 percent of NSSF’s total investment portfolio. That means up to 40% of the fund’s assets could be directed elsewhere. Its goal is to improve returns for members while spreading risk across different types of investments.

NSSF is looking at putting more funds into equities (shares listed on the stock market) and alternative investments such as real estate, private equity, and infrastructure projects. These options can offer higher returns over time compared to government securities, although they may come with slightly higher risk.

This move is significant because NSSF controls hundreds of billions of shillings in retirement savings. Any shift in its strategy affects financial markets, listed companies, and even major development projects. By reducing its exposure to government debt, the fund is also responding to concerns about over-concentration.

Kenyan workers contribute every month, the change is meant to strengthen their retirement future. The big question is will they be the beneficiaries of this project?  Higher returns mean better pensions down the road. At the same time, keeping 60 percent in government securities still ensures stability and protects members’ savings from sudden shocks.

The 60% cap creates room for smarter diversification while maintaining safety. For Kenya’s biggest pension fund, this is a careful but bold step toward securing stronger long-term returns for millions of members.

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