News
September 02, 2025
Pension assets in government debt hit Sh1 trillion amid diversification push
Retirement Benefits Authority (RBA) Statistical Digest 2024 data show that in previous years, the average increase in pension assets in government securities was nine per cent.
## Pension Assets in Government Debt Reach Sh1 Trillion Despite Diversification Efforts
Nairobi, Kenya - Kenyan pension funds have significantly increased their investments in government debt, with assets now exceeding Sh1 trillion, according to data from the Retirement Benefits Authority (RBA) Statistical Digest 2024. This milestone comes even as the RBA encourages diversification of pension portfolios to mitigate risk and enhance returns for retirees.
The RBA's latest figures highlight a continued trend of pension schemes allocating a substantial portion of their funds to government securities like Treasury bills and bonds. The Digest reveals that in previous years, pension assets held in government debt grew by an average of nine percent annually. This consistent growth underscores the perceived security and relative stability associated with government-backed investments.
While government debt offers a safe haven for pension funds, the RBA has been actively promoting diversification into other asset classes, including equities, real estate, and infrastructure projects. The aim is to reduce over-reliance on government securities and unlock potentially higher returns for pension savers in the long run. Diversification helps spread risk, making pension funds less vulnerable to fluctuations in any single market or asset class.
Industry experts suggest that the allure of government debt lies in its perceived low risk and predictable returns, particularly in a volatile economic environment. However, they caution that excessive concentration in government securities could limit the potential for significant growth and may not adequately hedge against inflation.
The RBA's ongoing efforts to encourage diversification reflect a commitment to ensuring the long-term financial security of Kenyan retirees. The authority is working to provide pension schemes with the necessary guidance and resources to explore alternative investment opportunities while maintaining prudent risk management practices. The challenge lies in balancing the need for secure investments with the desire to achieve optimal returns for future pensioners. This latest data emphasizes the need for continued dialogue and innovative strategies to steer pension funds towards a more diversified and resilient investment landscape.
Nairobi, Kenya - Kenyan pension funds have significantly increased their investments in government debt, with assets now exceeding Sh1 trillion, according to data from the Retirement Benefits Authority (RBA) Statistical Digest 2024. This milestone comes even as the RBA encourages diversification of pension portfolios to mitigate risk and enhance returns for retirees.
The RBA's latest figures highlight a continued trend of pension schemes allocating a substantial portion of their funds to government securities like Treasury bills and bonds. The Digest reveals that in previous years, pension assets held in government debt grew by an average of nine percent annually. This consistent growth underscores the perceived security and relative stability associated with government-backed investments.
While government debt offers a safe haven for pension funds, the RBA has been actively promoting diversification into other asset classes, including equities, real estate, and infrastructure projects. The aim is to reduce over-reliance on government securities and unlock potentially higher returns for pension savers in the long run. Diversification helps spread risk, making pension funds less vulnerable to fluctuations in any single market or asset class.
Industry experts suggest that the allure of government debt lies in its perceived low risk and predictable returns, particularly in a volatile economic environment. However, they caution that excessive concentration in government securities could limit the potential for significant growth and may not adequately hedge against inflation.
The RBA's ongoing efforts to encourage diversification reflect a commitment to ensuring the long-term financial security of Kenyan retirees. The authority is working to provide pension schemes with the necessary guidance and resources to explore alternative investment opportunities while maintaining prudent risk management practices. The challenge lies in balancing the need for secure investments with the desire to achieve optimal returns for future pensioners. This latest data emphasizes the need for continued dialogue and innovative strategies to steer pension funds towards a more diversified and resilient investment landscape.
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