The National Social Security Fund (NSSF) has convened a high-stakes Annual General Meeting (AGM) scheduled for February 6, 2026, as anxiety mounts over government plans to channel pension savings into infrastructure development.
The virtual AGM comes against the backdrop of President William Ruto’s stated policy shift toward financing development through local savings rather than foreign borrowing—a strategy that has placed millions of Kenyan workers’ retirement funds squarely at the centre of a national debate.
As contributors prepare to log in, many are demanding firm assurances that their hard-earned pension savings will not be exposed to political risk or mismanagement.
Plans to Use NSSF Pension Funds Trigger Alarm
The 8th NSSF AGM, to be conducted online, will review key governance and financial documents, including:
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The Managing Trustee’s report
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The Board of Trustees’ report
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The actuarial report
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Audited financial statements for the year ending June 30, 2025
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Fund management and custodial reports
Members have been urged to register in advance to participate.
The meeting is expected to put NSSF CEO David Korros on the spot, particularly regarding the potential deployment of pension funds into government-backed infrastructure projects.
Korros, who recently launched the fund’s Corporate Strategic Plan 2023–2027, will face pointed questions on risk management, investment safeguards, and the independence of NSSF decision-making.
Ruto’s Local Savings Strategy Under Scrutiny
Concerns intensified following President Ruto’s remarks at a December 2 State House briefing, where he outlined the government’s intention to reduce reliance on external loans—especially from China—and instead tap into domestic savings.
According to Ruto, NSSF had accumulated approximately Ksh320 billion by December 2022, with projections of:
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Ksh670 billion by January 2026
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Ksh1 trillion by June 2027
“Our reliance on external borrowing can be replaced by locally generated savings,” the president said.
While the statement was framed as fiscally prudent, critics argue that pension funds are not a fiscal backstop for government projects and must be insulated from political pressure.
Members Demand Transparency Over Risks
Pension experts and labour groups warn that diverting retirement savings into public infrastructure could expose contributors to long-term financial risk.
NSSF contributions are designed to secure retirement benefits, not to underwrite state projects whose returns may be uncertain or delayed.
Under the current framework:
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Employees and employers contribute equally
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Contributions range from Ksh960 to Ksh8,640 monthly depending on income
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Contributions are capped at 6% of pensionable earnings, with a maximum of Ksh4,320 per month from each party
This pooled capital represents one of Kenya’s largest reservoirs of long-term savings—making transparency, accountability, and professional fund management critical.
While some policymakers argue that NSSF-backed investments could accelerate development without ballooning public debt, critics insist that retirees must not shoulder the risk of state financing gaps.
AGM Set to Test NSSF Governance and Trust
Observers say the February 6 AGM could be one of the most contentious in NSSF’s history, serving as a litmus test for the fund’s governance and credibility.
Members are expected to press management on:
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The security of their savings
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Investment criteria and risk thresholds
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The extent of government influence over NSSF decisions
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Safeguards against political interference
Civil society groups are also calling for independent oversight mechanisms to ensure pension funds are deployed strictly in line with fiduciary principles.
A Defining Moment for Kenya’s Pension System
As the government explores alternative financing models to rein in foreign debt, the debate over NSSF funds has exposed a deeper tension between national development goals and individual financial security.
For millions of Kenyan workers, the February 6 AGM is more than a statutory meeting—it is a defining moment that could shape public confidence in the country’s pension system for years to come.
Whether NSSF can reassure contributors that their retirement savings remain protected may determine how far the government can go in leveraging local funds for national development.