Kenya’s retirement benefits industry grew its investment assets by 26.6% in 2025, reaching KES 2.72 trillion, up from KES 2.15 trillion the year before.
Surprisingly, pension funds continuing to lean heavily on government paper even as equities staged a strong comeback.
Government Securities Still Anchor the Portfolio
Kenya Government Securities remained the industry’s dominant holding, growing 28.3% to KES 1.39 trillion and accounting for 50.98% of total assets. That’s more than half of every shilling Kenyan pension schemes have invested, a reminder that fund managers still treat government debt as their safest long term bet, especially with yields staying attractive through much of the year.
Equities Deliver the Sharpest Gains
Quoted Equities posted the fastest growth of any major asset class, climbing 46.8% to KES 277.5 billion. That jump lifted equities to 10.20% of the total portfolio, up from a smaller share in 2024. The rally tracks closely with the Nairobi Securities Exchange’s own performance over the period, where the NSE 20 Share Index climbed from 2,227 points to 3,432 points between March 2025 and March 2026, according to Kenya National Bureau of Statistics data. Stronger listed company earnings and renewed investor confidence appear to have pulled pension money back into stocks after a cautious few years.
Guaranteed Funds and Property Round Out the Core Holdings
Guaranteed Funds grew 21.0% to KES 560.7 billion, holding a 20.61% share of total assets. These funds, which pool member contributions with insurers offering minimum guaranteed returns, remain a popular choice for schemes that want equity market exposure without giving up downside protection entirely.
Immovable Property held steadier, reaching KES 247.3 billion and representing 9.09% of the portfolio. Unlike government securities or equities, property values tend to move slowly, so the modest gain reflects the asset class’s role as a stabilizer rather than a growth driver.
Together, these four asset classes, government securities, guaranteed funds, equities, and property, made up 90.9% of everything Kenya’s pension industry has invested. The remaining tenth is spread across fixed deposits, offshore investments, corporate bonds, private equity, and a handful of smaller categories.
Five Year Asset Allocation Trend
| Investment Assets | 2021 (KES) | 2022 (KES) | 2023 (KES) | 2024 (KES) | 2025 (KES) | 2025 Allocation |
|---|---|---|---|---|---|---|
| Kenya Government Securities | 679,578,820,092 | 745,087,272,892 | 814,398,790,641 | 1,081,427,614,654 | 1,387,209,153,382 | 50.98% |
| Guaranteed Funds | 259,756,408,750 | 308,663,494,581 | 379,668,188,992 | 463,406,785,472 | 560,742,619,262 | 20.61% |
| Immovable Property | 240,266,372,170 | 241,738,264,342 | 248,715,235,710 | 239,046,177,083 | 247,262,030,017 | 9.09% |
| Quoted Equity | 252,089,306,946 | 213,825,392,334 | 157,497,052,133 | 189,034,599,477 | 277,464,471,685 | 10.20% |
| Fixed and Time Deposits | 39,703,605,650 | 50,152,327,334 | 87,920,931,058 | 68,945,145,736 | 66,302,499,248 | 2.44% |
| Offshore Investments | 3,883,709,321 | 15,466,121,351 | 24,557,158,186 | 31,300,220,742 | 83,376,331,568 | 3.06% |
| Cash and Demand Deposits | 9,471,543,835 | 8,474,426,267 | 795,229,002 | 8,107,650,715 | 16,003,196,416 | 0.59% |
| Property Unit Trusts | 2,910,371,853 | 862,841,948 | 8,703,315,258 | 9,183,764,055 | 16,735,609,621 | 0.62% |
| Unquoted Equity | 8,018,316,663 | 6,753,996,831 | 7,157,136,640 | 13,421,431,896 | 9,878,618,679 | 0.36% |
| Commercial and Corporate Bonds | 5,819,854,915 | 6,921,007,288 | 7,164,624,588 | 9,831,002,630 | 17,383,046,233 | 0.64% |
| Other Investments | 3,883,709,321 | – | 9,241,849,983 | 27,901,047,739 | 18,290,078,052 | 0.67% |
| Private Equity & Venture Capital | 377,765,000 | – | 4,272,734,606 | 7,870,927,292 | 20,215,104,615 | 0.74% |
| Total Investment Assets | 1,505,759,784,516 | 1,597,945,145,168 | 1,750,092,246,797 | 2,149,476,367,491 | 2,720,862,758,778 | 100% |
What This Means for Kenya’s Retirement Savers
The industry’s growth pattern tells a fairly consistent story. Kenyan pension funds still trust government securities above all else, but they are no longer shy about chasing equity returns when the market rewards it.
For the millions of Kenyans whose retirement savings sit inside these schemes, that balance matters. Heavy government bond exposure keeps the industry stable and predictable, while the sharp rise in equity allocation shows fund managers are willing to take on more risk when the opportunity looks right.
As Kenya’s capital markets continue to mature, that mix, steady and safe on one side, opportunistic on the other, will likely define how the country’s pension wealth grows in the years ahead.
