NAIROBI, Kenya, Feb 5 – The National Social Security Fund (NSSF) has defended its decision to invest in the Rironi–Nakuru–Mau Summit highway project, saying the structure of the deal safeguards contributors’ savings while aligning with regulatory requirements and regional pension fund investment practices.
Speaking during a media roundtable with financial journalists on Thursday, NSSF General Manager for Finance and Investments Ronald Nyamosi said the Fund’s participation in the project has been widely misunderstood, particularly on social media, where concerns have been raised over the exposure of pension savings to large infrastructure developments.
“There has been a lot of commentary on social media that does not reflect the structure or risk profile of this investment. NSSF is not funding the entire project our exposure is limited, well-defined and strictly within the equity portion approved under existing regulations,” Nyamosi said.
“Infrastructure investments like this are designed to deliver stable, long-term returns over time, just like government bonds, but with added economic and social value. The road will pay us back over the concession period, and members’ money remains secure,” he added.
The Mau Summit–Rironi project is being developed under a public-private partnership (PPP) model between NSSF and China Road and Bridge Corporation (CRBC).
The total investment for the road stands at about Sh170 billion, with the financing structured at 75 percent debt and 25 percent equity.
Under the arrangement, the debt portion will be raised by the Chinese partner at concessional rates, while equity contributions are shared between the two investors.
NSSF’s exposure is limited to 40 percent of the equity portion, translating to an estimated Sh20–25 billion, rather than the full project cost. The remaining equity is provided by CRBC, with lenders financing the balance.
Nyamosi said the Fund’s involvement is strictly on the equity side, insulating members from debt-related risks while allowing NSSF to benefit from long-term, predictable returns generated by toll revenues over the life of the concession.
According to Nyamosi, infrastructure investment is permitted under the Retirement Benefits Authority (RBA) regulations, which guide where pension funds can allocate capital. NSSF’s internal investment policy is derived from these regulations and sets clear limits and evaluation thresholds for infrastructure assets.
He added that investment decisions are not made internally by management or trustees alone but are first assessed by independent professional fund managers.
These evaluations focus on expected returns, sustainability of cash flows, governance structures, risk mitigation mechanisms and social impact.
Beyond compliance, NSSF contends that the decision reflects regional best practice, noting that pension funds across East and Southern Africa are increasingly anchoring long-term savings in infrastructure assets.
The Fund pointed to Zambia and Tanzania, where national pension schemes have taken equity positions in toll roads, power projects and transport corridors to generate predictable, inflation-hedged returns for members.
According to NSSF, such investments are now considered prudent for funds with long-term liabilities, provided governance, risk mitigation and return structures are properly designed.
The Rironi–Mau Summit highway is one of Kenya’s busiest transport corridors, linking Nairobi to the Rift Valley and western regions.
According to government projections, the 170-kilometer highway project is scheduled for completion by June 1, 2027.
The road project will feature a four-lane dual carriageway from Rironi to Naivasha, a six-lane dual carriageway between Naivasha and Nakuru and a simultaneous expansion of the adjacent 58-km stretch between Rironi–Maai Mahiu–Naivasha under the same dualling initiative.
