Pension and wealth

Retirements benefits sector projected to grow - Report

In Summary

•Sanlam holds Sh202 billion in assets under management

Sanlam Group
Sanlam Group
Image: FILE

The Retirement Benefits Authority posted an  eight per cent year-on-year increase in its total assets,  according to its latest report.

The authority's 2018  industry report indicates total assets managed by fund managers hit Sh813 billion while approved issuers managed Sh167 billion as at tDecember.

Sanlam Investments East Africa maintained the lead as fund manager, with Sh202 billion or 20 per cent of pension scheme assets under management.

“The retirement benefits sector is expected to grow this year given the relatively stable political environment and the gradual recovery of the stock market,”says  the report .

Sanlam CEO Jonathan Stichbury said the company is forecasting pension sector growth this year despite potential challenges arising from the delayed long rains.

“Increased food imports and reduced cash crop exports would normally be expected to exert pressure on the shilling," he said.

This is however likely to be mitigated by the high levels of forex reserves held by the Central Bank, strong diaspora remittances and proceeds from the recent Eurobond issue.

The report says that schemes are also expected to venture into alternative assets given the broadening of the allowable investment categories and take advantage of the public infrastructural projects and more so under the big four agenda.