NSSF earnings hit Sh19b

State pension scheme, the National Social Security Fund (NSSF), has reported a Sh19 billion growth in investment returns in 2017.

This represents a 1,900 per cent jump from the Sh1 billion reported in the previous period.

The returns, largely on the back of investments in Government papers and fixed deposits, have pushed gross revenue at the giant fund from Sh10.7 billion in 2016 to Sh30.2 billion last year. “Return on investment increased from Sh1 billion in 2016 to Sh20 billion in 2017,” said the fund in a note accompanying the results.

The increase was mainly attributed to good performance in net investment at the Nairobi Securities Exchange.

Cap investments

During the period under review, NSSF grew its portfolio in quoted securities from Sh49 billion to Sh53 billion and doubled investment in Treasury Bills from Sh3.4 billion to Sh7.9 billion. This comes amid calls on the State pension fund to diversify its massive portfolio outside the traditional investment avenues for more returns.  

In 2016, NSSF revealed its strategy to cap investments in land, which exposes it to land grabbers and fraudsters and instead turned to private equity investments.

The Banking Amendments, Act 2016 that put a cap on interest rates has also helped to grow earnings.