Kenya Pension Funds Project Double-Digit Returns in 2025 as Assets Hit Sh2.25 Trillion

By Valentine Uchechukwu Ndukwu

Kenya Pension Funds Project Double-Digit Returns in 2025 as Assets Hit Sh2.25 Trillion

Pension fund managers in Kenya are predicting strong double-digit returns in 2025, thanks to steady growth in both the stock market and fixed-income investments.

This positive outlook was shared during the Enwealth Umbrella Fund Annual General Meeting, where firms like ICEA Lion Asset Management and Kenindia Assurance said pension savers can expect their retirement benefits to keep growing after last year’s solid performance.

Kenya’s economy grew by 4.7 percent in 2024, with inflation dropping to 4.5 percent, down from 7.7 percent the year before.

The Kenyan shilling also gained 17.4 percent against the US dollar, boosting returns for pension funds.

For example, ICEA Lion’s Segregated Fund delivered a 19.25 percent net return in 2024, while Kenindia’s Guaranteed Fund also recorded impressive gains.

Overall, the Enwealth Umbrella Fund has averaged a 15 percent return since it began.

Currently, pension assets in Kenya have reached Sh2.25 trillion, which is about 13 percent of the country’s GDP.

There are over 1,000 registered pension schemes, but only about a quarter of Kenya’s working population is covered.

Fund managers believe that with the economy expected to grow by more than 5 percent in 2025, along with new reforms, pensions will remain strong, helping more Kenyans secure their financial future in retirement.