Kenya’s pension assets up 12.66pc to Sh3.17tn

Nairobi, Kenya - Kenya's pension assets have recently surpassed the Sh3 trillion milestone, growing by 12.66 percent in the six months leading up to June 2026. This substantial increase reflects a strategic shift in investment strategies by pension schemes. Over the past half year, pension assets under management climbed from Sh2.81 trillion in December 2025 to the current Sh3.17 trillion figure. This growth represents a Sh356 billion increase, underscoring a significant expansion in the size of the pension industry.

Government securities, once the dominant investment category, now account for 46.35 percent of total pension assets, representing a decrease from the previous 52.14 percent. This reduction in exposure to government securities highlights the growing trend of diversification among pension schemes. In contrast, investments in quoted equities have surged to Sh439.32 billion, up from Sh312.84 billion, constituting 14.37 percent of total assets.

This shift towards equities underscores a broader strategy to allocate funds towards more diversified, higher-yielding assets outside government securities.

Other notable investments include guaranteed funds at Sh597.07 billion, immovable property at Sh257.95 billion, offshore investments at Sh104.99 billion, and private equity holdings at Sh43.10 billion. Cash and demand deposits are valued at Sh65.56 billion, with additional investments spread across commercial paper, fixed deposits, listed corporate bonds, Real Estate Investment Trusts (REITs), unquoted equities, and infrastructure debt instruments.

The combined total of these various investment categories now accounts for 88.04 percent of pension assets, down slightly from the previous 90.43 percent. This diversification trend signals a broader strategy within Kenya's pension industry to optimize returns while mitigating risk.