The National Social Security Fund (NSSF) has clarified that members should not expect the 17 per cent interest rate currently credited to their savings to remain the same every year.
The Fund said the rate is reviewed and declared annually depending on how it performs during the financial year.
NSSF made the clarification on Wednesday, September 23, after questions emerged on whether members would continue earning the same 17 per cent interest on their savings.
According to the Fund, the 17 per cent rate applied to the 2024/2025 financial year and was not a fixed return.
“The 17 per cent is not a fixed annual rate. The interest rate is declared each year based on the Fund’s performance and may therefore increase or decrease from one year to another,” NSSF said.
This means the interest members receive can go up or down depending on the Fund’s performance in a particular year.
NSSF says it does not pay dividends
The Fund also addressed questions on whether NSSF members receive dividends.
NSSF said it does not pay dividends to members. Instead, members’ contributions earn interest which is declared every year and added to their savings.
“NSSF does not pay dividends. Members’ contributions earn interest, which is declared annually and credited to their accounts, adding to their accumulated savings,” the Fund said.
The explanation comes as NSSF continues to encourage Kenyans to make regular contributions towards their retirement savings.
Member contributions increase
Figures released by NSSF in February 2026 showed that contributions from members increased by 35 per cent in the year to June 2025.
The contributions reached Ksh83.97 billion, up from the previous period, as the number of active contributors also increased.
NSSF said the number of active members rose by eight per cent, from 3.3 million to 3.6 million.
The total amount held in member funds also increased during the period.
The Fund reported that member funds had risen by 43 per cent to Ksh572 billion in June 2025, compared to Ksh400 billion a year earlier.
The amount was still below the Ksh1 trillion target set for NSSF savings.
NSSF also recorded a 22 per cent return on investment in 2025, compared to 12.02 per cent in June 2024.
The latest clarification means the 17 per cent interest rate should be viewed as the rate declared for the specific financial year, rather than a return that members are guaranteed to receive every year.
