Nairobi: The Public Service Superannuation Fund (PSSF) has grown its membership to 529,635 and expanded its assets under management to Sh340.4 billion, five years after the contributory pension scheme began operations.
According to Kenya News Agency, PSSF Chief Executive Officer Dr Jonah Aiyabei stated that the growth was driven by increasing membership, consistent contributions, and a deliberate investment strategy aimed at securing long-term retirement benefits for public servants. Speaking during a Media Breakfast Roundtable in Nairobi, Aiyabei highlighted that the scheme, which commenced operations on January 1, 2021, had emerged as one of Kenya’s largest occupational pension schemes.
As of June 30, 2026, teachers accounted for the largest proportion of members at 332,950, followed by personnel from disciplined services-including the National Police Service, Prisons Service, and NYS-at 120,084. Civil servants accounted for 60,322 members, while county governments had 16,279 members.
The Fund’s investment performance has shown strength, recording a 12-month return of 17.68 percent for the year ended June 30, 2025, while its three-year annualized return stood at 19.7 percent. Aiyabei noted that the Fund achieved its long-term investment objective of generating returns equivalent to inflation plus four percentage points over both the 12-month and three-year periods.
PSSF has worked on diversifying its investment portfolio to reduce concentration risk and improve long-term returns. Government securities currently account for 74 percent of the portfolio, down from 99 percent when the scheme was established. Quoted equities account for 14 percent, corporate bonds five percent, offshore investments three percent, private equity two percent, and property one percent. This diversification has increased the Fund’s exposure to quoted equities, including major banking and telecommunications investments.
PSSF members have also seen benefits from improved investment performance, with the Board of Trustees approving a member income distribution rate of 17.89 percent for the year ended June 30, 2025, compared to 11.9 percent the previous financial year. The improvement was partly due to recovery in financial markets, including strong performance by listed banking and telecommunications companies.
Operating on a contributory basis, PSSF involves employees contributing 7.5 percent of their basic pay, while the Government contributes 15 percent. Aiyabei noted the Government had met its contribution obligations for the 2025/26 financial year, which enabled the Fund to invest members’ savings without delays. He emphasized that timely contributions are crucial for the Fund’s ability to invest and generate returns for members.
The Fund is also focusing on digitization to streamline pension claims processing. Aiyabei explained that PSSF has simplified the claims process from a lengthy documentation exercise to an online request, aiming to reduce payment timelines to less than 10 days for clear claims. He noted that the Fund aims for even faster processing in the future, arguing that members’ benefits are already funded and should be paid without delays.
These reforms are part of a larger digital transformation program that has seen PSSF convert manual processes into automated systems. The Fund has recently commissioned a pension administration system and is encouraging members to register on its online portal and update their records for faster and more efficient service delivery.
PSSF is set to host its second Pan-African Pensions Conference from November 18 to 20, 2026, in Mombasa. The conference will gather stakeholders to discuss pension policy, retirement security, investments, and emerging trends in Africa. Established under an Act of Parliament, PSSF serves as a statutory contributory pension scheme for public servants, including teachers, police officers, prison officers, NYS personnel, and mainstream civil servants.
In five years, its membership has risen from 330,318 to 529,635. Aiyabei highlighted that Kenya ranks as the third-largest pension market in Africa by asset size, holding over Sh3.17 trillion ($24.5 billion), with Africa being led by South Africa ($349.7 billion) and Morocco ($37 billion) in total accumulated retirement savings capital.
