NAIROBI, Kenya, Feb 6 – Idle prime properties owned by the National Social Security Fund (NSSF) in Nairobi’s Central Business District are undermining investment returns for pension contributors, even as the fund commits billions of shillings to the construction of the NSSF Twin Towers, the Auditor-General’s report for the year ended June 2025 shows.
The audit reveals that NSSF held investment property valued at Sh35.45 billion as of June 30, 2025, including five prime CBD properties worth Sh4.02 billion that remained idle throughout the year.
The properties were neither leased nor developed, denying the fund steady rental income at a time when commercial real estate remains a core pillar of its investment strategy.
Auditors noted that the idle assets breached Section 1.5.2 of the NSSF Investment Policy Statement, 2020, which requires the fund to structure and deploy assets in a prudent manner at all times to optimize returns for members.
The finding raises questions about capital allocation discipline at the pension fund, particularly as NSSF presses ahead with the high-profile Twin Towers project in Upper Hill, expected to cost tens of billions of shillings and positioned as a long-term income-generating asset.
While the Twin Towers is projected to deliver modern office and commercial space upon completion, the Auditor-General’s report suggests that existing assets in prime locations are not being fully utilized, weakening near-term returns and exposing contributors to opportunity costs.
“The properties remained idle during the year under review, contrary to Section 1.5.2 of the Fund Investment Policy Statement, 2020,” read the report in part.
“In the circumstances, management was in breach of the law while beneficial ownership to the properties could not be confirmed.”
The audit report noted that beneficial ownership of the idle CBD properties could not be confirmed, a failure that contravenes statutory requirements on asset ownership and accountability in public funds.
The audit further warns that leaving high-value assets dormant contradicts the fund’s fiduciary duty to contributors, especially in an environment of rising contribution levels and growing expectations for stable, inflation-hedged returns.
The findings come as NSSF continues to position real estate as a cornerstone of its long-term growth strategy.
