Zanzibar Social Security Fund was established under the Zanzibar Security Fund Act No. 2 of 1998 subsequently amended by the Zanzibar Social Security Fund Act No. 9 of 2002 and re-enacted by the Act No. 2 of 2005. Prior to the enactment of the Act and establishment of the Zanzibar Social Security Fund, there was no formal social security scheme in Zanzibar. Nor was there a significant private sector/occupational pension scheme sector in Zanzibar. Before the inception of Zanzibar Social Security Fund, public service employees in Zanzibar were covered and received pension benefits under the Pensions Act No. 2 of 1990
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