Pension fund managers are projecting strong double-digit
returns in 2025, driven by gains in equities and fixed income markets.
The outlook was shared at the Enwealth Umbrella Fund Annual General Meeting for FY 2024, where ICEA Lion Asset Management and Kenindia Assurance Company expressed optimism that pension savers can expect continued growth in their retirement savings following a strong performance last year.
Kenya’s economy expanded by 4.7 per cent in 2024, while inflation averaged at 4.5 per cent in 2024, down from 7.7 per cent in 2023, and is expected to remain within CBK’s target range.
The shilling appreciated 17.4 per cent against the US dollar in 2024, factors that translated to improved returns for pension funds.
The Enwealth Umbrella Fund has consistently delivered competitive returns, averaging 15.05 per cent since inception.
In 2024, the Segregated Fund, managed by ICEA Lion Asset Management, achieved a remarkable 19.25 per cent net return, while the Guaranteed Fund, managed by Kenindia Assurance Company, also posted solid gains.
The fund also registered a 49 per cent growth in assets under management, reaching Sh1.056 billion, up from Sh724 million in 2023.
George Kamau, Portfolio Manager at ICEA Lion Asset Management, attributed the high returns to Kenya’s economy, which has shown remarkable resilience.
“We expect GDP to expand by about 5.3 per cent in 2025. In summary, 2025 has so far provided a supportive investment environment. With equities maintaining momentum and fixed income assets benefitting from lower rates, pension savers can look forward to continued strong returns.”
According to Anthony Chumo, representing the RBA, pension assets in Kenya now stand at Sh2.25 trillion, representing 13 per cent of GDP.
There are 1,032 registered pension schemes in the country, of which 197 schemes (18.4 per cent) manage assets above Sh1 billion.
“While the sector currently serves 7.2 million members- 4.49 million being active contributors, the pension coverage is still around 26 per cent of the working population, underscoring the need to expand participation,’’ Chumo said.
The Central Bank of Kenya projects GDP growth to accelerate to 5.4 per cent in 2025.
Fund managers believe this growth outlook, combined with sector reforms and favorable investment conditions, will sustain double-digit pension returns and strengthen the retirement security of Kenyan workers.
