Latest industry statistics show the State-owned pension fund has grown its stake in Treasury bonds and bills to Sh170.9 billion last year from Sh83.2 billion in 2017.
The government debt instruments have fixed cash returns ranging from 7.4% to 15% depending on the duration.
Government securities made up 58.86% of NSSF’s Sh290.3 billion assets in the review period, a sharp rise from 39.76% of the Sh209.26 billion portfolio in 2017.
NSSF–which has hired six privately-held asset managers to oversee the investment of 82.9 percent of its portfolio –increased its allocation to government securities last year by Sh20.39 billion from an average of Sh25.93 billion in the prior two years.
The National Social Security Fund (NSSF) more than doubled its holding in government securities in five years, signalling a leaning towards higher guaranteed returns in a market where listed equities have generated lower returns and increased volatility.
The government debt instruments have fixed cash returns ranging from 7.4% to 15% depending on the duration.
