Sharp Daily
No Result
View All Result
Saturday, June 28, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Investments

Pension contributors facing financial strain amid dwindling returns

Austin Wekesa by Austin Wekesa
February 9, 2024
in Investments
Reading Time: 2 mins read

Pension contributors face looming financial challenges as annual investment returns in 2023 dipped below the inflation rate, according to a study by fund administrator Zamara.

The study revealed a decrease in the weighted average returns of pension schemes by 0.3 percentage points to 1.4% in 2023 from 1.7% in 2022.

Simultaneously, Kenya experienced an average inflation rate of 7.7% in 2023, resulting in a loss for the average saver. Notably, this marks the second consecutive year that pension returns fell below the inflation rate, following the 7.6% inflation rate recorded in 2022.

Zamara attributed the underwhelming returns to a weak equities market performance and fair value losses on bonds due to a notable increase in yields, leading to price decreases in the secondary market.

RELATEDPOSTS

Securing your future: Why self-employed Kenyans need personal pensions

January 3, 2025

What low inflation means for Kenya’s pension funds and retiree stability

November 2, 2024

The survey conducted by Zamara noted that out of 412 funds with a total fund value of KES 1.0 trillion, equity allocation decreased by 9.4 percentage points to 12.4% in 2023 from 21.8% in 2022.

Consequently, fixed income and offshore investments saw their total allocation rise to 80.3% and 5.5% respectively, compared to 76.5% and 1.5% in 2022.

Among the asset classes, offshore investments yielded the highest returns with an average of 58.3%, while fixed income investments recorded an average return of 6.3%. Conversely, equity investments posted a weighted average return of (22.9%), indicating poor performance in the equity market.

Pension funds typically invest in large companies listed on the Nairobi Securities Exchange (NSE) to ensure security for savers’ funds and generate steady returns from dividends. In the fixed income market, they prioritize low-risk, long-term government bonds to ensure fund stability. While offshore investments offer high returns, they also carry high risk.

Previous Post

Jowie Irungu found guilty, Maribe acquitted in Monicah Kimani murder case

Next Post

World Bank commits KES 19.1 billion to Kenya’s vaccine production facility

Austin Wekesa

Austin Wekesa

Related Posts

Analysis

Kenya’s CIS market: Q1′ 2025 shows a surge, setting the stage for future expansion.

June 26, 2025
Investments

Investor shift to long term bonds drives oversubscription in CBK’s reopened auction

June 19, 2025
Analysis

Your First Investment should be an emergency fund with Cytonn Money Market Fund

June 16, 2025
Investments

Contrarian investing in Kenya.

June 13, 2025
Investments

Policies shaping Kenya-Tanzania energy collaboration

June 10, 2025
Investments

Navigating inflation and currency risks in African investments

June 10, 2025

LATEST STORIES

Private vs Public Pension Funds in Kenya

June 27, 2025

The mechanics of currency manipulation

June 27, 2025

Understanding how to access your pension savings in Kenya.

June 27, 2025

What happened to president Ruto’s economic dream?

June 27, 2025

Opinion: Populism feeds votes, not growth

June 27, 2025

Competitive advantages of small businesses

June 26, 2025

Opinion: Invest in sports for national prosperity

June 26, 2025

Ethiopia’s access to Eritrean ports is a game-changer for trade

June 26, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024