The National Social Security Fund (NSSF) is among several social security institutions in the East African region that have committed to contribute one percent of their asset base to a newly established regional pension fund aimed at financing infrastructure development.
The initiative, which will see the regional funds collectively raise Sh52 billion from a combined asset base of Sh5.2 trillion, seeks to provide affordable financing for infrastructure projects across the East African Community (EAC) member states.
According to the resolution reached by the participating funds, the contributions will be channeled towards key infrastructure ventures such as roads, energy, and housing, with the aim of spurring economic growth and regional integration.
The social funds have also agreed to hold monthly meetings to evaluate investment opportunities and ensure effective coordination in the allocation of resources once the regional pension fund becomes operational.
Officials say the fund is expected to help reduce the region’s dependence on foreign borrowing and enable governments to access financing in local currencies, thereby easing the burden of external debt and mitigating exchange rate risks.
Regional lenders have been encouraged to partner with social funds and serve as guarantors for projects financed through the fund, a move intended to de-risk pension investments and enhance confidence in regional infrastructure ventures.
At the same time, regional governments have been urged to develop policies that encourage increased pension contributions, in order to expand the asset base of social security institutions and strengthen their capacity to support long-term development projects.
The regional pension fund marks a significant step toward leveraging domestic resources for sustainable development and deepening financial cooperation within the East African Community.
