The National Social Security Fund (NSSF) reported that benefit payouts to retirees fell by 10% to KSh 8.74 billion for the year ending June 2025.
This decline is notable because it occurred during a period when total member contributions surged by 35% (reaching KSh 83.97 billion) due to higher mandatory deduction rates.Â
The NSSF attributed the drop primarily to an 11% decrease in benefit applications, with 11,893 fewer claims filed compared to the previous year.
There has been a “massive drop” in voluntary top-ups, which plummeted by 47% to just KSh 1 billion. Analysts suggest that as mandatory deductions increased, squeezed workers abandoned voluntary savings to cope with the rising cost of living.
Economic pressures have reportedly forced some Kenyans to delay retirement or postpone claiming their benefits to maintain active income, contributing to the lower payout figures.
Under the NSSF Act 2013, increased contributions do not immediately result in higher payouts; they are locked away for long-term growth, creating a short-term gap between rising fund assets and current disbursement levels.Â
While payouts fell, the fund’s overall financial health strengthened, recording an 83% surge in investment performance with a 22% return on investment in 2025.
By Anthony Solly
