The Public Service Superannuation Fund (PSSF) has awarded a series of major contracts to Kenyan financial institutions as part of efforts to strengthen the management, oversight and administration of public sector retirement savings.
In a statement outlining its performance against predetermined objectives for the 2024/25 financial year, the fund confirmed it had appointed four local fund managers, three custodial banks, and a data processing firm, signaling a significant step in reinforcing governance, efficiency and accountability within Kenya’s public pension system.
The contracts were awarded to GenAfrica Asset Managers, Sanlam Investments East Africa, African Alliance, and CorpTrust Investment Services, all of which will serve as fund managers for the scheme.
In addition, NCBA, Co-operative Bank, and KCB were appointed as custodians, while Zamara Actuaries, Administrators and Consultants was selected as the fund’s data processing firm.
The appointments form part of PSSF’s broader strategy to enhance sustainability in the provision of retirement benefits and to strengthen institutional capacity in pension administration, as outlined in its strategic objectives for the current financial year.
According to the fund, the award of contracts reflects a deliberate move to diversify and professionalize the management of pension assets in line with regulatory requirements.
By engaging multiple local fund managers, PSSF aims to improve investment income while spreading risk across different portfolios and expertise.
The fund said the appointments are consistent with regulations governing retirement benefits schemes and are designed to ensure prudent management of members’ contributions.
The use of independent custodians is intended to provide an additional layer of oversight, safeguarding assets through the separation of investment management and asset holding functions.
Custodians are responsible for the safe keeping of assets, settlement of transactions and reconciliation of accounts, a role that is widely regarded as critical to transparency and accountability in pension fund operations.
PSSF said the new appointments are also part of a wider effort to improve operational efficiency across its systems and processes.
Under its strategic objective of enhancing efficiency and effectiveness in the collection of contributions, record management and discharge of benefits, the fund has been implementing reforms aimed at reducing turnaround times and improving service delivery to members.
The appointment of Zamara Actuaries, Administrators and Consultants as the data processing firm is intended to support this effort by strengthening data management, record-keeping and administrative accuracy.
Reliable data systems are considered essential in pension administration, particularly for the timely processing of benefits and accurate maintenance of member records.
The fund indicated that these measures are aligned with its goal of strengthening pension administration structures and systems, a key priority under its current strategic framework.
PSSF’s strategic objectives for the 2024/25 financial year emphasize sustainability in the provision of retirement benefits, with a focus on achieving financial growth while ensuring long-term stability of the fund.
As part of this approach, the fund has been reviewing its investment policy and developing alternative investment and property strategies.
These measures are designed to support consistent returns for members while aligning investment decisions with regulatory and risk management requirements.
The appointment of multiple fund managers is expected to play a central role in implementing these strategies, bringing specialized expertise across different asset classes and investment approaches.
The selection of Kenyan financial institutions for all the awarded contracts underscores the fund’s focus on working with local firms that have established experience in asset management, banking and pension administration.
Clear separation of roles between fund managers, custodians and administrators is widely regarded as best practice in pension fund governance, helping to reduce operational risk and enhance accountability.
The fund noted that these measures support its broader mandate to safeguard members’ interests while ensuring compliance with applicable regulations.
The contract awards come as PSSF continues to implement reforms aimed at improving service delivery, strengthening internal systems and enhancing confidence in the management of public pension funds.
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