Kenyan pension funds have significantly increased their investment in government debt, reaching Sh1 trillion in 2024, despite calls for diversification into alternative assets. This surge represents a nearly 30 percent increase and marks the highest growth in the last four years, reflecting a preference for perceived low risk and stable returns.

• 2024 saw pension assets in government securities grow by 28.5 percent to Sh1.08 trillion, accounting for 48.5 percent of total pension assets under management.
• Hosea Kili, Managing Director/CEO of CPF Group, and Dr. Julius Kipngetich, Group Chief Executive of Jubilee Holdings, have urged pension funds to explore novel and alternative investments beyond traditional government paper.
• The Retirement Benefits Authority (RBA) Statistical Digest 2024 highlighted that while government securities offer high statutory limits for investment, other asset classes like quoted equity (8.5 percent invested vs. 70 percent limit) and unquoted equity (0.6 percent invested vs. 5 percent limit) remain significantly underutilized.