This archive report was first published on 17 October 2019.
Kenya's pension industry has seen little change in assets over the past decade, despite a significant increase in fund size, as revealed in Zamara's annual report on pension performance 2019, published on October 17, 2019.
The report highlights a lack of flexibility among pension schemes to invest in private equity, with only 1% of portfolios allocated to this area, despite a 10% allowance. This has led to a stagnation in asset growth, with 70% of allocations going towards fixed incomes, primarily government bonds, and 25% towards equities.
The Retirement Benefits Authority has encouraged the pension industry to diversify its investments to help Kenyans save more for their retirement. However, a significant proportion of the population remains unprepared for retirement, with two-thirds of Kenyans lacking a savings culture, financial discipline, and financial literacy.
