Economic Outlook on Financial Performance
According to the Central Bank of Kenya, the economy is expected to perform better leaving behind months of electioneering uncertainty. Although Kenya’s economy has been resilient, the multiple recent shocks depict the urgency of improving social protection mechanisms to cushion the most vulnerable households against financial challenges, persistent inflationary pressures, unpredictable weather patterns and challenges emanating from global factors. Indicators still point to softer but gradual economic recovery
Defined Benefits (DB)
The overall fund returns on investment for the quarter ended September 2022 stood at 1.6% compared to a return of 1.8% recorded in the same quarter in the year 2021. The slight difference in the performance was attributed to the negative valuations recorded in the Treasury Bonds and offshore markets. The Fund
value reduced from Kshs 18.30 billion as of 31st December 2021 to Kshs 16.80 billion as of 30th September 2022. This is because the Defined Benefits (DB) Fund being a closed fund, there are no
contributions coming into the Fund. The income received from investments is used to pay benefits to retiring members and those in service
Defined Contribution (DC)
During the quarter ended September 2022, the Fund registered a return on investment of 2.00%, compared to a return of 2.41% recorded in the quarter ended September 2021. The reduced
performance is attributed to the negative valuations recorded in the Treasury Bonds and Offshore markets. The Fund value reduced from Kshs 19.02 billion as at 31st December 2021 to Ksh
17.61 billion as of 30th September 2022
Income Drawdown (IDD)
During the quarter ended September 2022, the Fund registered a return on investment of 2.45%, compared to a return of 2.53% recorded in the quarter ended September 2021. The slight reduction in performance is attributed to the negative valuations recorded in the Treasury Bonds markets. The Fund value increased from Ksh 365.88 million as of 31st December 2021 to Ksh 705.91 million as of 30th September 2022.