Sidian Bank has emerged as the biggest recipient of the National Social Security Fund’s (NSSF) fixed deposits for the year ending June 30, 2024.
The bank, which received zero allocations in previous years, received Ksh800 million, above banking giants like Equity, Cooperative, and Stanbic.
The unexpected rise has raised eyebrows, given the timing and political undertones.
Sidian Bank’s windfall came at a time when NSSF has slashed its overall fixed and term deposits by more than 75% compared to the previous year, dropping from Ksh10.8 billion in 2023 to Ksh2.6 billion in 2024.
On the other hand, firms making contributions to the National Social Security Fund (NSSF) have dropped for the first time since the Covid-19 pandemic.
NSSF was still making bold deposit placements, including the largest single allocation to Sidian Bank, although over 540 companies stopped contributing to the fund.
Also Read: Centum Sells Shares at Sidian, Retains 44.52% Stake
NSSF Interest Income from Sidian Bank and Other Deposits
At the same time, NSSF reported that it earned Ksh105.8 million in interest from call and fixed deposits in the financial year ending June 2024.
This is an increase from Ksh97.1 million interest made the previous year, despite a reduction in overall deposits and a shrinking base of contributing employers.
While traditional partners such as ABSA, DTB, and NBK dropped off the interest-earning list in the financial year, Sidian Bank made Ksh10.4 million in interest income for the fund.
The bank, which did not appear on the list in 2023, has quickly risen among the top contributors to NSSF’s interest revenue.
Leading the list in 2024 was Cooperative Bank, with Ksh39.2 million in interest payments, an increase of Ksh23.6 million the year before.
On the other hand, Stanbic and NCBA posted strong gains, earning the fund Ksh11.5 million and Ksh25.9 million respectively.
Meanwhile, ABSA and NBK collectively generated over Ksh35 million in 2023 but contributed nothing in 2024.
Also Read: Kenya’s Pension Hits Ksh2.21 Trillion After Hike in NSSF Deductions
Stock Holdings Take a Hit
NSSF suffered a sharp drop in its stock investment portfolio during the year, with the total value of equities held by its external fund managers shrinking from Ksh7.2 billion in 2023 to Ksh4.8 billion in 2024.
The most significant declines were recorded in Equity Group, which dropped from over 28 million units in 2023 to just 585,700 units in 2024, slashing its portfolio value from Ksh1.26 billion to Ksh26.7 million.
Similarly, KCB Group saw a dramatic reduction in units held from 24.9 million to 9 million with the portfolio value decreasing from Ksh1.01 billion to Ksh273.9 million.
Standard Chartered holding also dropped from Ksh422 million to Ksh39 million, while BAT Kenya slid from Ksh124 million to Ksh14 million.
However, MTN Uganda made a new entry into the portfolio, with over 8 million units acquired at an average price of Ksh4.92. Also, the largest stake remained in Safaricom, with over 251 million shares, up from 165 million, despite the average price per share dropping to Ksh16.12.
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