Kenya. Pension returns up five percentage points on stocks gains
Pension fund returns rose by five percentage points in 2021 on improved performance of equities and offshore investments, signalling higher interest earnings for savers.
Pension fund administrator Zamara said that in 2021, the median return for schemes stood at 12.4 percent compared to 7.3 percent in 2020.
The higher returns were mainly driven by a rebound in equities, where returns stood at 18.4 percent in the year compared to a decline of 10.4 percent in 2020. This asset class accounts for 22.2 percent of total investments among the funds.
The funds were therefore able to comfortably beat annualised inflation (6.1 percent) in their annual returns.
“Performance was positively impacted by the resilience in the equities market and offshore investments. In 2021, the Kenyan equities market recovered to record a growth of 9.4 percent, compared to an 8.6 percent decline in 2020 as measured by the NSE All-Share Index,” said Zamara.
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