By Afrireport 
The National Social Security Fund (NSSF) pension reserves are expected to reach Ksh1 trillion within the next few months.
Deputy President Kithure Kindiki has announced, signaling a major shift in how the government plans to finance large-scale infrastructure development.
Speaking during a public forum, Kindiki said the growing pension fund presents an opportunity for the government to access long term financing for infrastructure projects with high economic returns, reducing reliance on external borrowing and expensive commercial loans.
He emphasized that the funds would be borrowed through structured, regulated mechanisms that safeguard contributors’ savings.
According to the Deputy President, infrastructure projects funded through NSSF resources would be carefully selected to ensure they generate stable and predictable returns capable of sustaining pension payouts while also stimulating economic growth.
He noted that roads, energy, housing and logistics infrastructure remain critical to unlocking productivity across the country.
The NSSF is not idle money. It must work for the contributors,” Kindiki said, adding that infrastructure investment offers a reliable avenue for long-term returns when managed prudently. He stressed that any borrowing would comply with existing legal frameworks governing pension funds and public finance management.
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The announcement comes at a time when Kenya is grappling with rising public debt and limited fiscal space.
By leveraging domestic savings, the government hopes to reduce exposure to foreign exchange risks associated with external loans while keeping interest costs manageable.
NSSF has already been involved in financing major national projects, including housing developments under the government’s affordable housing programme.
The fund’s asset base has expanded significantly following recent reforms that increased mandatory contributions from both employees and employers, boosting inflows and long-term sustainability.
However, Kindiki’s remarks are likely to reignite debate over the use of pension savings for government projects.
Critics have in the past raised concerns about political interference, governance risks, and the safety of contributors’ funds when pension money is directed toward public sector borrowing.
In response to such concerns, the Deputy President assured Kenyans that strict oversight mechanisms would be in place.
He said all investments would be subjected to professional assessment, actuarial analysis, and approval by NSSF trustees to ensure contributors’ interests remain protected.
Infrastructure projects can provide steady returns, while improved roads, power supply and logistics networks enhance economic activity, job creation, and tax revenues.
As NSSF approaches the Ksh1 trillion milestone, attention will now turn to the specific projects targeted for investment, the terms of government borrowing and the safeguards put in place to protect millions of Kenyan workers whose retirement savings underpin the fund.
The coming months are expected to test the balance between development financing needs and the long term security of pension contributors.
