(NAIROBI, KENYA) – The National Social Security Fund (NSSF) has revived plans to develop its 1,000 acre land in Mavoko, Machakos County into a mixed use city, nearly 15 years after first proposing to put up housing on the property.
The state controlled pension fund in June called for proposals by developers to carry out a feasibility study, develop a master plan and put up infrastructure and a pilot phase at the land under what is known as an engineering, procurement, construction and finance (EPC+F) contract. The tender for the proposals closes on 18th August, having been opened in June and extended from the original closing date of 17th July.
The NSSF said in the tender document that the project location at Katani area of Mavoko sub county in Machakos county and the 1,000 acre or thereabout land size offers the NSSF and the EPC+F partner the opportunity to undertake a city development that would be a landmark decentralised live, work and play node for Nairobi City. Development options may cover all property sectors including residential, commercial, light industrial, institutional, specialised warehousing, hospitality and other specialised uses.
The NSSF declined to offer further details on the proposed development, citing the ongoing tender process that will among other things determine the cost and scope of the venture.
NSSF has been trying to develop the Mavoko land for nearly 15 years, having initially proposed to construct 30,000 housing units on the property in 2012 under a joint venture with private developers. The housing project was tagged a flagship Vision 2030 project.
The project was however cancelled in 2013 by the labour ministry shortly after the sacking of the then NSSF managing trustee Tom Odongo under unclear circumstances. In 2015, the fund revived the plans to develop the land with a proposal to put up 60,000 low cost houses, also under a joint venture arrangement.
This new plan however flopped after opposition from trade unions which complained about an opaque tendering process for the joint venture partners, and questions of whether the NSSF would afford to pay its share of the project cost. MPs also questioned the economic viability of the plan, saying that it risked exposing workers to losses.
In 2015, the price of an acre of land in the Syokimau area stood at KES17.2 million ($119,000 / £94,000 / €111,000), as per estimates published by real estate firm HassConsult in its periodic land indices, valuing the NSSF land at KES17.2 billion ($119 million / £94 million / €111 million).
Today, the price of land in the area has gone up to KES39.4 million ($273,000 / £215,000 / €254,000) per acre, raising the estimated value of the land above KES39 billion ($270 million / £213 million / €252 million) at current market rates.
NSSF Mavoko Land and Contribution Data Table
| Item | 2012 | 2015 | 2025 | 2026 |
|---|---|---|---|---|
| Land size (acres) | 1,000 | 1,000 | 1,000 | 1,000 |
| Proposed housing units | 30,000 | 60,000 | – | – |
| Land price per acre (KES) | – | 17.2 million | 39.4 million | 39.4 million |
| Land price per acre ($) | – | 119,000 | 273,000 | 273,000 |
| Estimated land value (KES) | – | 17.2 billion | 39.4 billion | Above 39 billion |
| Estimated land value ($) | – | 119 million | 273 million | Above 270 million |
| Member monthly contribution cap (KES) | 200 | 200 | 4,320 | 6,480 |
| Member monthly contribution cap ($) | 1.40 | 1.40 | 30.00 | 44.90 |
| Assets under management (KES) | – | – | 623.8 billion | – |
| Assets under management ($) | – | – | 4.32 billion | – |
| Property investments (KES) | – | – | 38.08 billion | – |
| Property investments ($) | – | – | 264 million | – |
| Government securities (KES) | – | – | 379.9 billion | – |
| Government securities ($) | – | – | 2.63 billion | – |
| Property share of total assets (%) | – | – | 6.1% | – |
| Government securities share of assets (%) | – | – | 60% | – |
The renewed effort to put up housing and other developments on the land comes when workers contributions to the fund have gone up following the implementation of the NSSF Act 2013 in February 2023 after a decade long court battle. The new rates kicked in with an increase of a member’s ceiling contribution from KES200 ($1.40 / £1.10 / €1.30) per month to KES1,080 ($7.50 / £5.90 / €7.00), matched by the employer, in the first year.
In the second year, starting February 2024, the rate was raised to KES2,160 ($15.00 / £11.80 / €13.90), before going up again to KES4,320 ($30.00 / £23.60 / €27.90) starting February 2025. This year, the contribution cap rose to KES6,480 ($44.90 / £35.40 / €41.80) per month, and will finally go up to KES8,640 ($59.90 / £47.20 / €55.80) per month in February 2027.
In December 2025, NSSF’s assets under management stood at KES623.8 billion ($4.32 billion / £3.40 billion / €4.02 billion), having grown from KES308.3 billion ($2.14 billion / £1.68 billion / €1.99 billion) in June 2023 courtesy of the enhanced contributions.
Immovable property investments were valued at KES38.08 billion ($264 million / £208 million / €246 million), or 6.1% of the fund’s total assets, with government securities the biggest asset at KES379.9 billion ($2.63 billion / £2.07 billion / €2.45 billion) or 60% of the fund assets.
Retirement Benefits Authority (RBA) rules cap property exposure for pension funds at 30% of total assets, behind guaranteed funds at 100%, Treasury bonds at 90% and listed equities at 70%.