Kenya’s Pension Assets Quadruple in 10 Years
Monday, May 12 2025 9:00 am
By Sourced from Kenya Retirement Benefits Authority
According to the Kenya Retirement Benefits Authority (KRBA), Kenya’s pension sector assets under management (AUM) reached KSh2.26 trillion in 2024 following a decade of growth driven by pension reforms from 2013, a stable investment environment.
The reforms mainly led to increased contributions, especially the implementation of the National Social Security Fund (NSSF) Act of 2013. The second phase of this implementation saw the lower contribution limit rise from Kshs6,000 to Kshs7,000 and the upper limit jump from KSh18,000 to KSh36,000, significantly boosting overall contributions, the authority said in its report.
For the half year (June – December 2024), the assets increased by Kshs276.5 billion, a 14% growth due to increased contributions. Also, a better-performing Nairobi Stock Exchange saw an increase in the value of the equity investments in the half-year ending December 2024, further propping up the sector growth.
The authority also reported that although a significant portion of about 92% of pension assets remained concentrated in the traditional asset classes of government securities, guaranteed funds, equities, and property, the sector in Kenya is taking steps to venture into non-traditional investments. For instance, unquoted equities, commercial paper and non-listed bonds, all recorded impressive growth exceeding 100% for the half year.
Private equity investments grew by 67%, and offshore investments increased by 32%.
