PSSF fund grows to Sh340.4b on investment diversification

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Pension benefits under the Public Service Superannuation Fund (PSSF) grew by 41.08 per cent, closing the June 2026 period at Sh340.4 billion.

PSSF chief executive Dr Jonah Aiyabei attributed the approximately Sh100 billion increase to strategic diversification of investments away from government securities, coupled with timely remittances from the National Treasury.

The National Treasury sponsors the Public Service Superannuation Scheme (PSSS), which covers public servants.

“The diversification of the portfolio continues systematically. We have been reducing our exposure in government securities from around 100 per cent, and we are now at 74 per cent as we continue building this portfolio,” said Aiyabei.

As at June 30, 2026, the scheme had 529, 635 members. This is a growth from 505,554 last year.

Teachers Service Commission (TSC) made up the majority of the membership at 332, 950 followed by the disciplined service (120, 084), civil servants (60,322) and a portion of county government workers (16,279).

“Our contributions have been coming in full and on time. As we close the June 30, 2026 financial year, we have received all contributions, including for May. For June, we received it before July 15. We do not have any outstanding contributions for the last financial year from the National Treasury,” he said.

While PSSF is approaching six years having been operationalised in January 2021, the PSSS Act that the fund is anchored on was put in place in 2012.

It is this Act that replaced the non-contributory scheme then, where civil servants had their pension fully sponsored by the government, to the current contributory framework. 

Under the current framework, employees contribute 7.5 per cent while the government matches.

Aiyabei noted that since the fund took in workers who are 45 years and below, the majority have not exited service. However, the fund is improving its response time for those exiting by ensuring benefits are paid within the shortest time.

“We have been paying benefits for the unfortunate situations where people pass on, and we adhere to that 30 days or less. But as we move forward, we are bringing it to seven days or even one day on demand because it is your money,” he said.