Public service pension contributors exceed 500,000 as fund grows
The Public Service Superannuation Fund reports a rise in contributors to over 500,000, with assets increasing to Sh242 billion due to strategic investments.
The number of public service workers contributing to the government’s pension scheme has surpassed 500,000, as over 100 new institutions joined the fund in the past year.
Data from the Public Service Superannuation Fund (PSSF) shows that membership rose from 442,929 in June 2024 to 511,000 by June 2025, reflecting rapid uptake across the civil service. The number of employers also increased from 137 to 148 during the same period, according to the fund’s 2024/25 annual report.
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“The fund recorded a net increase in scheme funds of Sh100.6 billion up from Sh57.49 billion in the previous financial year. From this performance, the fund value increased from Sh142.2 billion to Sh242.87 billion as at 30 June 2025,” reads the report.
The growth in contributions enabled the fund to nearly double its investments in Treasury Bonds, which rose from Sh100.4 billion last year to Sh188.3 billion. PSSF also expanded its investment portfolio, introducing Sh5.4 billion in private equities, Sh7 billion in offshore investments and Sh2 billion in property. Meanwhile, investment in Treasury Bills declined from Sh24.8 billion to Sh9.7 billion over the same period.
The fund realised a net income of Sh25.3 billion from investments, nearly double the Sh14 billion earned in the previous year. Member contributions also increased by 18 per cent, rising from Sh44.7 billion in the year to June 2024 to Sh52.7 billion in 2025.
“Benefit payments of Sh154 million were paid during the year. This is a 153 per cent increase in benefit claims paid in the previous year, amounting to Sh59.7 million,” adds the report.
However, the fund’s operating costs rose to Sh708 million from Sh424 million the previous year.
Established in 2021, the PSSF was part of reforms transitioning the previous non-contributory, exchequer-funded pension system into a defined contribution scheme. Under the new system, public service workers contribute 7.5 per cent of their salaries, which is matched by their employers and remitted to the fund.
Membership has grown from 368,795 in June 2022 to 511,000 by June 2025, representing a 38.6 per cent increase over four years. While the scheme initially targeted civil servants, especially those in the disciplined forces, it has since expanded to include more public service workers.
PSSF chief executive Jonah Aiyabei attributed the growth in assets to “strategic investments, robust governance and a commitment to sustainable value creation.”
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