Six picked to manage NSSF’s Sh110bn assets, steer reforms
Barclays Bank of Kenya managing director, Adan Mohamed, chairman of the NSSF board of trustees. Photo/WILLIAM OERI
The National Social Security Fund has appointed six new fund managers to handle its Sh110 billion worth of assets.
The move by the fund is in line with requirements by the industry regulator, Retirements Benefits Authority.
According to Mr Adan Mohammed, chairman of the board of trustees, the decision to hire the fund managers will greatly improve the financial standing of the institution.
Running portfolio
Old Mutual, Stanbic Investments, Genesis Investments, Co-op Trust Investment, Pine Bridge Investments and ICEA Asset managers will be involved in running the portfolio.
“The new fund managers will be mandated to invest on behalf of NSSF in the capital and property markets.
“Their targets will stand at four percentage points above the prevailing inflation rate,” said Mr Mohammed.
The company retained Kenya Commercial Bank and Standard Chartered Bank as its custodians.
The giant pensions fund has been on a course to redeem its image dented by years of mismanagement.
After a restructuring exercise that saw it bring on board several new departmental heads, the latest move is widely expected to leverage it on a professional perspective.
As a government body, NSSF is mandated to offers social protection to all Kenyan workers, with a requirement that workers contribute to it monthly.
The contribution is currently pegged at Sh200 per employee, with the employer matching it up, to a total of Sh400 every month.
The amount is paid out upon retirement at a five per cent return to the pensioner or their dependants.
Speaking at the hand-over ceremony to the fund managers, managing trustee Alex Kazongo said the fund was waiting for a ministerial approval to increase the interest rate from to 7.5 per cent.
“This will be a marked improvement from the guaranteed five per cent per annum,” said Mr Kazongo
The fund owns several commercial and housing estates across the country, estimated at billions of shillings.
Additionally, it invests in both equity and bond markets at the Nairobi Exchange, where it earns handsome dividend payouts annually.
