By benadeta mwaura - Reporter
Kenya, January 21 2026 - Advocate Francis Wanjiku has raised concerns about the possible use of pension funds from the National Social Security Fund (NSSF) and the Public Service Superannuation Fund (PSSF) to buy shares in the Kenya Pipeline Company (KPC) Initial Public Offering (IPO), arguing that such moves could expose retirement savings to undue risk and violate fiduciary duties that protect contributors’ interests.
In a statement widely circulated this week, the legal expert warned that pension funds are not designed as general government financing instruments, and their use in corporate share purchases, especially in volatile markets such as equities, must strictly adhere to trustees’ mandates and pension law requirements.
“Retirement savings should be managed in the best long-term interest of contributors and beneficiaries,” Wanjiku said, urging that any decision to channel NSSF or PSSF assets into the KPC IPO be subject to transparent risk disclosure, actuarial justification, and explicit contributor consent.
The warning comes amid broader debates over how government and pension funds interact in financing public sector initiatives. Critics have previously protested plans to deploy portions of pension savings toward infrastructure projects without adequate risk evaluation and oversight, arguing that contributors’ protections may be compromised.
Pension funds such as NSSF and PSSF traditionally invest in a diversified portfolio of assets, including government securities, corporate bonds and, where appropriate under law, equities, to earn returns that safeguard retirees’ future income. Trustees are legally required to act in the best financial interests of contributors and ensure funds are not exposed to excessive risk.
The current debate comes as the KPC IPO, expected to raise around 106.3 billion shillings through the sale of a 65 % state stake, draws interest from a wide investor base, including local and regional institutional investors such as pension schemes.
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Under Kenyan pension regulation, fund trustees must adhere to strict fiduciary and actuarial standards when investing contributors’ money. Experts say any move to use long-term pension assets in an IPO must be backed by sound financial analysis, clear risk management frameworks, and full disclosure to members.
This scrutiny is part of a broader national conversation on the role of domestic savings in economic development. President William Ruto’s administration has advocated tapping local savings, including pension assets, as an alternative to external borrowing for financing large national projects.
At the upcoming NSSF Annual General Meeting (AGM) scheduled for early February, contributors are expected to press fund managers for clarity on investment strategies and governance, especially regarding how NSSF engages with public and private sector assets. Retirement security: Pension funds exist to provide income security for retirees, and any investment must prioritise long-term stability over short-term yield.
Fiduciary duties: Trustees are legally obliged to act in the best interests of contributors and ensure investments align with risk tolerance and regulatory frameworks. Public confidence: With rising public scrutiny of how pension funds are managed, transparency and member engagement are increasingly important for sustaining trust in retirement systems.
The lawyer’s warning adds a legal and ethical dimension to ongoing discussions about Kenya’s push to deepen capital markets and mobilise domestic capital. It underscores the need for careful balancing between national development goals and the protection of individual retirement savings.
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