The business of managing Kenya’s retirement billions is booming. The National Social Security Fund (NSSF) has paid out a staggering Sh1.09 billion in fees to its private fund managers, a record figure that signals the explosive growth of the fund’s assets following the controversial increase in monthly deductions.

Data from the latest disclosures for the year ending June 2025 reveals a 59.8% jump in fees paid to the three lucky firms: GenAfrica Asset Managers, African Alliance Kenya Asset Management, and Co-optrust Investment Services. These firms are the custodians of the NSSF’s externally managed portfolio, which has now ballooned to Sh517.96 billion. The payout is a direct consequence of the NSSF Act 2013, which unlocked a flood of cash from Kenyan workers’ pay slips.

The Deduction Windfall

For years, the NSSF was a sleeping giant, constrained by a Sh200 monthly contribution cap. The implementation of the new rates in February 2023 changed everything. Contributions surged, and the fund’s coffers swelled. The law requires the NSSF to outsource the management of a significant portion of these funds to private managers to ensure professional investment and reduce political interference.

The result is a bonanza for the fund managers. The Sh1.09 billion fee is not just a cost; it is an indicator of the sheer volume of wealth being aggregated. The managers are tasked with investing this money in equities, bonds, and real estate to generate returns for retirees. With the portfolio crossing the half-trillion mark, the pressure to perform is higher than ever.

• The Big Three: GenAfrica, African Alliance, and Co-optrust are arguably the most powerful movers in the Nairobi Securities Exchange (NSE) right now. Their buy-and-sell decisions, backed by NSSF liquidity, can move the market.
• The Worker’s Question: While managers earn billions, the Kenyan worker asks: "What is my return?" The NSSF has historically struggled with below-inflation returns. With professional management and higher assets, the expectation is now for double-digit interest on member savings.

A New Era for Pensions

The rise in assets also brings scrutiny. The NSSF has a history of questionable real estate deals and ghost projects. By moving the money to regulated private managers, the hope is that the funds are safer. However, the fee structure itself will be watched closely. Is Sh1 billion too high a price to pay for management? Or is it a fair commission for safeguarding the nation’s nest egg?

The growth trajectory suggests that the NSSF will soon become a trillion-shilling fund. This makes it the single most important financial institution in the region. Its health determines the dignity of millions of future retirees. For now, the fund managers are smiling all the way to the bank, but the real test will be whether they can deliver a retirement that is worth waiting for.

As the assets rise, so do the stakes. The NSSF is no longer just a savings pot; it is a financial titan that holds the economic future of Kenya in its hands.