Kenya’s retirement schemes wrapped up 2025 on a high note, delivering solid double-digit returns and reinforcing pensions as one of the country’s strongest long-term investment vehicles, even as momentum cooled in the final quarter.
According to the latest Zamara Consulting Actuaries Schemes Survey (Z-CASS), the industry recorded a median annual return of 25.3% in 2025, capping a year powered by a historic equities rally at the Nairobi Securities Exchange (NSE).
The survey covered 406 retirement schemes managing assets worth KSh 1.51 trillion, offering one of the most comprehensive snapshots of Kenya’s pension sector.
While returns remained positive in the fourth quarter, performance eased compared to the blockbuster third quarter.
Median Q4 return: 2.5% (down from 7.1% in Q3)
Equities: 8.3% in Q4, sharply lower than the 19.4% recorded in September
Fixed income: 1.6%, down from 5.2% the previous quarter
The slowdown reflected softer performance across both equities and bonds, though markets avoided a year-end reversal.
Despite the late-year deceleration, quoted equities were the undisputed star of 2025, delivering a staggering median return of 64.3% and driving overall scheme performance.
Although the 2025 annual return of 25.3% dipped slightly from 29.3% in 2024, it remained firmly in double-digit territory—far outperforming most traditional savings options.
Retirement schemes with higher exposure to equities and offshore assets once again outperformed their conservative peers.
Aggressive schemes returns:
28.1% (1 year)
19.0% (3 years)
13.7% (5 years)
Only 12 schemes qualified as aggressive, highlighting a cautious but growing shift toward higher-risk portfolios as confidence builds amid the ongoing NSE bull run.
Offshore investments posted the lowest quarterly median return at 1.2%, but still delivered a respectable 15.1% for the full year.
Performance remained relatively muted due to the Kenya shilling’s stability against the US dollar, even as global geopolitical tensions continued to pose risks to international markets.
Crucially for savers, Kenya’s pension schemes continued to grow real value over the long term, easily outpacing inflation.
Median annualized returns:
18.6% over three years
13.6% over five years
By comparison, inflation averaged:
4.5% (one year)
4.7% (three years)
5.8% (five years) as at December 2025.
Despite short-term volatility and a softer finish to the year, the Z-CASS survey confirms a powerful takeaway: Kenya’s pension industry remains resilient, inflation-beating, and wealth-creating over time.
For millions of contributors, 2025 was not just a good year—it was a reminder that disciplined, long-term investing still pays.







