DB Scheme Investment Strategy

Investment Objectives

DB scheme Investment objective is:

To maximize the returns on investments within acceptable risks.
To ensure the assets are sufficient to meet member obligations.
To provide adequate liquidity to meet cash flow requirements.
To endeavor to preserve invested capital.
To obtain long-term real rate of returns on the Scheme assets

Fund value Trend:

The Scheme is closed to new active members, and the number of contributors continues to decline while the number of pensioners and beneficiaries increases. As a result, contribution income is decreasing year on year. The fund value has gradually decreased as a result.The fund closed at Kes.17.18Bn as of 31^st December 2024.

ASSET ALLOCATION

The scheme invested in Government Securities, Quoted Equities, Private Equity, Fixed and call deposits and property.

Property forms the largest asset class of the scheme. The board of Trustees has put in place measures to reduce the allocation to enhance portfolio returns as well as Comply with the Retirement Benefits Authority regulations.

FUND PERFORMANCE AS OF DECEMBER 2024.

In 2024, the Kenya Shilling strengthened by 17%, reversing 2023’s 27% depreciation, as improved foreign investor sentiment followed the successful Eurobond refinancing. Inflation eased, prompting the Central Bank to cut interest rates, which drove bond yields down and prices up, culminating in a record 29% bond performance.

The pace of interest rate decline has slowed down in 2025 therefore Equities still present an opportunity for the scheme.

The fund outperformed the benchmarks in 3-months. However, it underperformed against the benchmark for 1 year return and 3 years return.