This archive report was first published on 7 May 2020.
Published on May 7, 2020, a report by Zamara Consulting Actuaries Schemes Survey (Z-CASS) revealed that pension schemes in Kenya reduced their investment in the Nairobi Securities Exchange (NSE) stocks due to the Covid-19 pandemic.
The pandemic led to a significant drop in the value of shares at the NSE, with foreign investors selling their stakes in blue-chip companies worth Sh125 billion on March 11, resulting in a single-largest drop in value.
According to the Z-CASS report, the proportion of pension schemes' investments in fixed income assets increased to 75% in the first quarter of 2020, up from 72.5% in the previous quarter.
Equities allocation was reduced to 18.8% in the first quarter, down from 21.7% in the previous quarter, due to the fall in valuations in the equity market.
The pandemic has also affected investments in real estate and offshore investments, with both asset classes reporting depressed returns.
