Kenya’s retirement schemes have recorded strong annual gains despite the slowdown in the last quarter of 2025.
According to the Zamara Consulting Actuaries Schemes Survey (Z-CASS) covering 406 schemes managing KSh 1.51 trillion in assets, the survey showed that in the fourth quarter, median return eased to 2.5%, down from 7.1% in Q3, with equity returns slowing to 8.3% from 19.4% and fixed income returns dropping to 1.6%.
“Retirement schemes posted a median return of 2.5% in the fourth quarter of 2025, down from 7.1% in the third quarter, reflecting positive but weaker performance in both fixed income and equities.”
Despite the slowdown, the one-year median return stood at 25.3%, largely driven by quoted equities, which delivered a remarkable 64.3% return.
The aggressive schemes with higher equity and offshore exposure outperformed conservative portfolios, posting median returns, including:
- 28.1% for over year
- 19% over three years
- 13.7% over five years
Offshore assets also delivered modest quarterly returns of 1.2% but still achieved 15.1% for the year, benefiting from the stable Kenya shilling against the US dollar.
Equity Returns Boost Retirement Schemes
The report has also revealed that equity returns remained the primary drivers of strong full-year returns for Kenya’s retirement schemes, with a median return of 64.3%, outperforming other asset classes.
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This strong performance has been largely contributed to by EABL, KCB Group, Equity Group, and Absa Bank, lifting the one-year median return to 25.3%, even as the fixed-income returns reduced to 1.6%.
Meanwhile, the Schemes with higher equity exposure, particularly the more aggressive portfolios, outperformed their conservative competitors, posting median returns of 28.1% over one year, 19% over three years, and 13.7% over five years.
The conservative schemes with larger allocations to fixed income generated steadier but lower returns.
Survey on Retirement Schemes Reports
The survey claimed that participating managers further lowered the Central Bank Rate to 9.00%, following a series of consecutive rate cuts during the quarter, to boost the growth of private-sector credit.
This process aimed to lower lending rates, thereby improving access to credit and increasing the money supply in the economy, while ensuring that inflationary expectations and the exchange rate remained stable.
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During the last quarter, the Kenya Sovereign Bond Index also gained 50%, up from 3.5% in September, according to reports.
The Federal Open Market Committee (FOMC) lowered the target range to 3.50%-3.75%, reflecting a softening economic outlook amid easing inflationary pressures and concerns about slowing economic growth.
The survey was conducted by Fund Managers who provided the necessary asset and performance data in a timely manner.
They include African Alliance Kenya Investment Bank Limited, asset managers Apollo Asset Managers, British American Asset Managers, CIC Asset Managers, Co-op Trust Investments, Cytonn Asset Managers, GenAfrica Asset Managers, ICEA Lion Asset Management Limited, NCBA, Old Mutual Investment Group Limited, and Sanlam Allianz Investments Limited.
However, other schemes did not qualify for inclusion in the Survey. This was due to incomplete data; the data received did not pass sense checks.
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