Pension schemes in Kenya are increasingly turning to infrastructure investments as a strategic shift toward higher returns and long-term financial sustainability, with the National Social Security Fund (NSSF) leading the charge.
The NSSF has announced its interest in investing in the 175-kilometre Nairobi-Nakuru-Mau Summit Highway, a major public-private partnership (PPP) project currently at the tendering stage. The highway is expected to become a toll road, offering a reliable revenue stream that NSSF believes will generate substantial returns for pensioners.
Speaking during the just-concluded International Social Security Association (ISSA) continental technical seminar in Nairobi, NSSF Managing Trustee David Koros highlighted the fund’s strategy to diversify beyond traditional asset classes. “Infrastructure projects like the Nairobi-Nakuru-Mau Summit Highway offer secure and lucrative investment opportunities that also contribute to national development,” he said.
Koros added that the proposal follows extensive benchmarking with public pension schemes abroad, many of which are now investing in infrastructure, agriculture, and healthcare. This, he said, is part of NSSF’s broader plan to double its portfolio from the current Ksh 500 billion to Ksh 1 trillion in the medium term.
The shift toward infrastructure is also aligned with Kenya’s push for PPP models to finance large-scale projects without overburdening taxpayers or relying heavily on donor funding. Experts at the ISSA seminar noted that with multilateral lenders tightening credit conditions, pension funds are becoming a viable source of long-term capital for development.
In addition to expanding its investment portfolio, NSSF is also implementing internal reforms. Koros revealed that the fund has reduced the average pension payment processing time from 76 days to just 10 days, with plans to cut it down further to a single day.
As African countries navigate rising public debt and limited external funding, the pivot by pension funds toward infrastructure marks a transformative approach to safeguarding retirement savings while fueling national progress.
