Retirement Benefits Industry Report as at June 2026

INDUSTRY BRIEF
PENSION INDUSTRY
HALF-YEAR REPORT
JUNE 2026 www.rba.go.ke

TABLE OF CONTENTS

SUMMARY OF OVERALL ASSETS UNDER MANAGEMENT 3
INVESTMENT ASSET ALLOCATION 5
2.1 Traditional Investment Assets 6
2.2 Alternative Assets 8
MACRO-ECONOMIC INDICATORS 11
3.1 Inflation Rate 11
3.2 Exchange Rates 12
3.3 Interest Rate 12
3.4 Capital Market Performance 13
PENSION CONTRIBUTION TRENDS 14
4.1 Total Pension Contribution 14
4.2 Contributions to Post-Retirement Medical Funds 15
FUNDS HELD BY FUND MANAGERS AND APPROVED ISSUERS 16
5.1 Funds held by Fund Managers 16
5.2 Assets Under Approved Issuers 17
5.3 Funds Under Internal Management 18
ASSETS HELD BY NATIONAL SOCIAL SECURITY FUND (NSSF) 19
6.1 NSSF Growth in Assets 19
6.2 NSSF Asset Allocation 20
6.3 Contributions to NSSF 21
KEY INDUSTRY RATIOS 23
7.1 Liquidity ratio 23
7.2 Pension to GDP Ratio 24
7.3 Asset Allocation Ratios 25
INDUSTRY DEVELOPMENTS AND FUTURE OUTLOOK 26
8.1 Legislative Developments 26
8.2 NSSF Act (2013) Implementation and Contribution Changes 27
8.3 The Virtual Asset Service Providers (VASP) Regulations, 2026 27
8.4 Future Outlook 28

3 Industry Brief - June 2026
1.0
SUMMARY OF OVERALL ASSETS UNDER MANAGEMENT The pension industry’s Assets Under Management (AUM) grew by 9.79% over the six months between December 2025 and June 2026, from Ksh 2,810.64 billion to Ksh 3,085.82 billion. This growth represents a 21.92% increase over the full one-year period, from Kshs. 2,531 billion reported in June 2025 as shown on
Figure 1. This was an increase in Kshs. 554.82 billion investment assets for the
pension industry over the 12-month period.
1,576 1,704 1,725
1,979
2,255
2,531
2,811
Jun-22 Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 Dec-25 Jun-26 Amount in Ksh Billion 1,515 3,086
Figure 1: Total Pension Assets under Management Trend (Kshs.Bn)
Retirement Benefits Sector - June 2025 Industry Brief

Industry Brief - June 2026 4
Key Expansion Drivers:

Implementation of the NSSF Act: The
ongoing rollout of the NSSF Act, 2013, continued to drive growth in contribution inflows through upward adjustments in contribution limits.
Growth of Medical Funds: The increasing
establishment and active funding of PostRetirement Medical Funds (PRMF) by schemes provided a steady, additional stream of asset accumulation.
Macroeconomic Stability: Mild inflation and
a stable Kenya Shilling against major currencies helped earnings from foreign investments.
Investment Performance & Bullish
Equities: Stable interest rates and positive valuation gains across key asset classes supported growth within existing portfolios. In addition a strong recovery at the Nairobi Securities Exchange (NSE), driven by improved corporate earnings and renewed investor confidence, resulted in gains from quoted equities.

Industry Brief - June 2026 5
2.0
INVESTMENT ASSET ALLOCATION
Table 1 below shows the asset classes in which pension funds have been invested.
Table 1: Pension Asset Allocation (Kshs. Bn)
While the industry’s core portfolio remains anchored in traditional investments, there is a clear trend towards broader diversification. The four primary asset classes, Government Securities, Guaranteed Funds, Quoted Equities, and Immovable Property, collectively accounted for 88.04% of total AUM by the end of June 2026. This represents a reduction from the 90.43% concentration observed in December 2025, signaling a growing appetite among schemes for alternative investment vehicles. Overall, the portfolio is categorized into Traditional Assets, comprising the four primary classes alongside Fixed Deposits, and Alternative Assets, which capture the remaining investments. Detailed shifts in these allocations are comprehensively discussed in the next section. Ksh. (Bn) % Ksh. (Bn) % Ksh. (Bn) % Ksh. (Bn) % Ksh. (Bn) % Ksh. (Bn) % 1 Government Securities 818.86 47.46% 1011.23 51.10% 1,183.3 52.47% 1,329.3 52.53% 1,465.55 52.14% 1,430.41 46.35% -2.40% 2 Quoted Equities 145.15 8.41% 174.99 8.84% 202.3 8.97% 255.2 10.08% 312.84 11.13% 443.35 14.37% 41.72% 3 Immovable Property 242.07 14.03% 236.31 11.94% 249.2 11.05% 235.6 9.31% 240.96 8.57% 245.81 7.97% 2.01% 4 Guaranteed Funds 358.12 20.76% 405.24 20.48% 437.5 19.40% 495.9 19.60% 522.39 18.59% 597.07 19.35% 14.29% 5 Listed Corporate Bonds 6.65 0.39% 7.04 0.36% 6.3 0.28% 3.8 0.15% 28.29 1.01% 36.34 1.18% 28.44% 6 Fixed Deposits 81.93 4.75% 53.22 2.69% 53.7 2.38% 64.0 2.53% 56.50 2.01% 48.02 1.56% -15.00% 7 Offshore 27.19 1.58% 39.04 1.97% 64.5 2.86% 84.0 3.32% 85.20 3.03% 105.69 3.43% 24.05% 8 Cash and Demand Deposits 24.95 1.45% 24.71 1.25% 23.1 1.02% 20.3 0.80% 33.17 1.18% 63.22 2.05% 90.61% 9 Unquoted Equities 3.63 0.21% 3.94 0.20% 4.0 0.18% 4.5 0.18% 8.90 0.32% 7.83 0.25% -12.05% 10 Private Equity 5.74 0.33% 8.77 0.44% 16.2 0.72% 20.1 0.79% 29.93 1.07% 43.14 1.40% 44.12% 11 Real Estate Investment Trusts(REITs) 11.12 0.64% 11.12 0.56% 11.7 0.52% 12.7 0.50% 14.37 0.51% 19.66 0.64% 36.76% 12 Commercial paper, non-listed bonds 0.02 0.00% 3.08 0.16% 3.2 0.14% 5.0 0.20% 12.06 0.43% 43.81 1.42% 263.35% 13 Infrastructure Debt Instruments 0.77 0.02% 0.00% 14 Other Assets 0 0.00% 0.06 0.00% 0.2 0.01% 0.3 0.01% 0.47 0.02% 0.71 0.02% 52.04% Total 1,725 100% 1,979 197880% 2,255 100% 2,531 100% 2,810.64 100% 3,085.82 100% 9.8% Dec-23 Jun-24 Dec-24 Jun-25 Dec-25 Jun-26 Half-Year % Growth No Investment Asset Category Retirement Benefits Sector - June 2025 Industry Brief

6 Industry Brief - June 2026
2.1 Traditional Investment Assets
Figure 2: Year-on-Year Changes in Traditional Asset Allocation
2.1.1 Government Securities
Government Securities remained the dominant asset class, closing at Ksh. 1,430.41 billion and maintaining a portfolio share of 46.35%. Although the allocation experienced a 2.40% decline over the last six months, it is important to note that the asset class still sustained 7.6% growth over the one-year period. The recent half-year contraction aligns with the continued easing of monetary policy, as the Central Bank Rate (CBR) was lowered further to 8.75% in early 2026, exerting downward pressure on yields for new debt issues and making them less attractive compared to other asset classes.
2.1.2 Quoted Equities
This asset class recorded a year-on-year growth of 73.8%, pushing its total value to Ksh. 443.35 billion. Its portfolio share expanded to 14.37%. Building on a 41.72% growth in the first half of 2026, this 12-month trajectory reflects strong market confidence and sustained price rallies in key blue-chip counters, allowing equities to absorb much of the capital rotated out o f lower-yielding fixed-income assets. A sectoral breakdown of the quoted equities portfolio reveals high concentration, with Banking (47.04%), Telecommunication & Technology (31.26%), and Energy & Petroleum (15.10%) collectively commanding 93.41% of the total Ksh
443.35 billion equity exposure, as detailed in the
Table 2 below:
7.6%
73.8%
4.3%
20.4%
-24.9%
211.1%
Government
Securities Quoted Equities Immovable Property Guaranteed Funds Fixed Deposits Cash and Demand Deposits % Change 7.6% 73.8% 4.3% 20.4% -24.9% 211.1%

Industry Brief - June 2026 7
Sector Amount %
Banking 208,560,358,406.90 47.042% Telecommunication & Technology 138,602,433,070.24 31.263% Energy & Petroleum 66,946,400,701.58 15.100% Manufacturing & Allied 27,585,671,758.87 6.222% Insurance 1,110,488,652.75 0.250% Agricultural 233,853,967.89 0.053% Commercial and Services 139,024,033.24 0.031% Investment 116,207,059.49 0.026% Other 36,163,617.21 0.008% Investment Services 15,019,791.92 0.003% Construction & Allied 3,267,534.54 0.001% Total 443,348,888,594.63 100%
Table 2: Quoted Equities Sectoral Breakdown
2.1.3 Guaranteed Funds
Guaranteed Funds expanded by 20.4% over the one-year period, reaching Ksh. 597.07 billion. The asset class maintained a stable 19.35% share of total industry assets, up from 18.59 % over the last six months. This sustained growth shows that a substantial segment of smaller schemes continues to favor capital protection, ease of administration, and stable returns offered by approved issuers in a fluctuating interest rate environment.
2.1.4 Immovable Property
Immovable Property has also demonstrated resilient, steady growth, increasing by 4.3% yearon-year to a total of Ksh. 245.81 billion. While it grew by 2.01% in the last six months, its overall portfolio share continued a gradual decline, settling at 7.97% as schemes generally prioritize more liquid and higher-yielding investment vehicles.
2.1.5 Fixed deposits
Fixed Deposits were the only traditional asset class to record a significant contraction over the year, declining by 24.9% to settle at Ksh. 48.02 billion. Over the last six months alone, the asset class dropped by 15.00%, bringing its portfolio share down to 1.56%. This ongoing reduction is directly attributed to the continued easing of the CBR and the resulting drop in commercial bank deposit rates, prompting fund managers to seek better returns elsewhere.

8 Industry Brief - June 2026
2.2 Alternative Assets
Significant growth was observed in alternative categories, reflecting a broadening of investment strategies as shown by Figure 3.
Figure 3: Changes in alternative asset allocation
2.2.1 Listed Corporate Bonds
The asset class experienced a massive Yearon-Year expansion, growing from Ksh 3.80 billion in June 2025 to Ksh 36.34 billion by June 2026 driven by new issuances that were attractive to the schemes. This nearly tenfold increase saw its overall industry portfolio share from 0.15% to 1.18%. Building on the initial structural shift observed in late 2025, the asset class grew by 28.44% over the last six months (up from Ksh
28.29 billion in December 2025).
Key drivers and constituent shifts over the period include:

Infrastructure Security: The LINZI 003
Infrastructure Asset-Backed Security (IABS) remains the primary driver and anchor holding in this category, standing at Ksh 17.74 billion as of June 2026. While experiencing a minor half-year adjustment of Ksh 383.44 million (-2.12%) due to scheduled principal amortizations, it continues to command the largest single allocation within listed private debt.
New Banking Sector Entrants: The first
half of 2026 saw fresh capital deployment into corporate banking paper, led by new allocations into I&M Bank Medium Term Note (I&M-FXD/T01/2026/5.5 at Ksh
421.23 million).
Expansion in Telecommunication
Debt: Schemes expanded their exposure to telecommunications debt, with holdings in the Safaricom Medium Term Note (SCOM DMT FXD) increasing by 29.63% during the half-year to reach Ksh 271.66 million.
Rise of Sustainability Instruments: The
sector recorded increased allocations into the KMRC Sustainability Note (Ksh 7.09 million), complementing existing housing debt held under the standard KMRC Fixed Rate Note (Ksh 453.14 million). 25.8% 72.7% 115.1% 54.7% 100.0% 109.7% Listed Corporate Bonds Offshore Unquoted Equities Private Equity Real Estate Investment Trusts(REITs) Commercial paper, non-listed bonds Infrastructure Debt Instruments Other Assets Series1 848.6% 25.8% 72.7% 115.1% 54.7% 777.1% 100.0% 109.7%

Industry Brief - June 2026 9
2.2.2 Private Equity and Venture Capital
Private equity grew by 44.12% to reach Ksh.
43.14 billion. Growth was predominantly driven
by a massive Ksh. 10.84 billion growth in existing holdings in the Africa Finance Corporation (reaching Ksh. 33.08 billion), alongside increased allocations in the Africa50 Infrastructure Acceleration Fund I (up by Ksh. 504.16 million).

New PE Allocations:
New funds were also deployed into fresh funds, led by investments in Alpha Managers’ Co-investment Fund I (Ksh. 241.16 million), African Development Partners IV LP (Ksh. 237.07 million), and the Helios Investors V PE Fund (Ksh. 78.47 million).
2.2.3 Unquoted Equities
The Unquoted Equities class contracted by 12.05% over the first half of 2026, declining from Ksh. 8.90 billion in December 2025 to Ksh. 7.83 billion.
Asset Reclassification: The overall reduction
in this portfolio was primarily driven by the reclassification of Ksh. 4.44 billion in Family Bank shares to Quoted Equities.
Core Holdings: Following
this reclassification,
CPF Financial
Services Ltd emerged as the largest single holding in this category, maintaining a valuation of Ksh. 2.10 billion.
2.2.4 Offshore Investments
Offshore investments grew strongly in the first half of the year, with 25.8% year-over-year growth, as fund managers targeted global tech and developed-market funds to hedge domestic risk. This expansion was anchored by large holdings in the BlackRock ISF Developed World Index Fund (Ksh 15.29 billion) and Franklin US Opportunities Fund (Ksh 9.49 billion), alongside strong new capital inflows into global equity trackers
2.2.5 REITs
REITs also grew in the first half of 2026, with a 54.7% year-over-year expansion, anchored by the Laptrust Imara I-REIT, which maintained its leading position with a stable valuation of Ksh 6.92 billion. Other changes include a Ksh 1.34 billion increase in the Acorn Student A c c o m m o d a t i o n Income REIT, pushing its total to Ksh 4.68 billion. Additionally, schemes continued to diversify their structured property exposure through new market entrants, with a Ksh 482.09 million fresh allocation to the ALP Industrial REIT.
2.2.6 Commercial Paper & Non-Listed Bonds
This asset class grew by 141.39%, reaching Ksh.
12.06 billion. The primary driver was the LINZI
Sukuk Bond, with the scheme investment value growing by Ksh. 16.85 billion.
2.2.7 Other Assets
The Other Assets category grew by 52.04% over the six-month period, reaching Ksh 0.71 billion by June 2026 and bringing its total Year-on-Year (YoY) growth to 109.7%. This expansion was anchored

10 Industry Brief - June 2026 by continued allocations into specialized Shariahcompliant vehicles, such as the Mansa-X Shariah Compliant Fund (Ksh 443.93 million) and the SIB Najah Mansa-X Special Fund (Ksh 51.81 million), alongside investments in commodity instruments (Absa NewGold ETF). Beyond the numbers: A robust and growing pension industry ensures that Kenyans can transition into retirement with dignity, peace of mind, and financial independence. “

Industry Brief - June 2026 11
3.0
MACRO-ECONOMIC INDICATORS
Key macroeconomic indicators, such as inflation, exchange rates, and interest rates, directly affect pension fund investment performance. Below are trends in key microeconomic indicators between December 2025 and June 2026
3.1 Inflation Rate
Figure 4: Inflation Rate Trends
Source: CBK
Inflation remained within the government’s target range of 2.5% to 7.5%, averaging 5.29% in the first half of 2026 compared to 4.46% in the second half of 2025 as illustrated by Figure 4. Despite a relatively subdued first quarter, inflation experienced a notable uptick in Q2, peaking at 6.68% in May before slightly easing to 6.41% in June. For retirement benefit schemes, this upward trajectory underscores the need to maintain positive investment returns.
4.15 4.53 4.58 4.56 4.46 4.49 4.4 4.25 4.39
5.59
6.68 6.41
Jul-25
Aug-25
Sep-25
Oct-25
Nov-25
Dec-25
Jan-26
Feb-26
Mar-26
Apr-26
May-26
Jun-26
12 Month Inflation Average
First Half Average 4.46
Second Half Average 5.29
Retirement Benefits Sector - June 2025 Industry Brief

12 Industry Brief - June 2026
3.2 Exchange Rates
Figure 5: Exchange Rate Trends
Source: CBK
Most offshore investments within the pension industry are US Dollar-denominated, making the KES/USD exchange rate a key driver of asset valuations. During the first half of 2026, the Kenyan Shilling remained stable, averaging KSh.
129.29 against the US Dollar compared to KSh.
129.26 in the second half of 2025 as illustrated in
Figure 5.
For pension schemes, this continued currency stability protected foreign holdings from exchange rate volatility, ensuring that offshore portfolio growth reflected underlying market performance rather than currency gains or losses.
3.3 Interest Rate
Figure 6: Interest Rate Trends
Source: CBK
As a primary driver of pension investment yields, the Central Bank Rate (CBR) maintained an accommodative stance in the first half of 2026. The rate eased from 9.00% in January to 8.75% in February, holding steady through June as shown in Figure 6. 129.24 129.48
129.13 129.02 129.02
129.43 129.39 129.40 129.48
Jul-25
Aug-25
Sep-25
Oct-25
Nov-25
Dec-25
Jan-26
Feb-26
Mar-26
Apr-26
May-26
Jun-26
First H Second Half Average 129.26 alf Average 129.26 9.75 9.50 9.50 9.25 9.25 9.00 9.00 8.75 Jul-25 Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26

Industry Brief - June 2026 13
For pension schemes, this lower-interest-rate environment continues to exert downward pressure on yields on new government debt and fixed deposits. This dynamic is accelerating the reallocation of capital away from traditional fixedincome instruments toward higher-yielding equities and alternative asset classes.
3.4 Capital Market Performance
Pension funds remain significant institutional investors in the capital markets. During the first half of 2026, the Nairobi Securities Exchange (NSE) experienced a historic surge in trading activity and overall market value, as shown in Table 3.
Table 3: Key Capital Market Performance Indicators
The primary driver behind this growth was the shifting macroeconomic environment. Declining interest rates made equities significantly more attractive, prompting investors to redirect capital away from fixed-income assets. This shift in sentiment was further reinforced by strong corporate earnings and dividend payouts, particularly within the banking sector. The market resurgence was also boosted by major new corporate actions that contributed to the spikes seen in Q2 trading volumes. The Initial Public Offer (IPO) of the Kenya Pipeline Company (KPC) in March absorbed substantial capital and ended an 11-year listing drought. Family Bank was also successfully listed in June 2026. By bringing over 1.6 billion shares onto the public market without raising new capital, Family Bank’s listing significantly improved market liquidity, broadened investor participation, and directly fueled the 511% surge in equity turnover. Key Performance Indicators Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Half Year Change End Period NSE 20-Share Index 2,440.26 2,972.64 3,139.19 3,431.56 3,755.44 20% End Period NASI 153.43 176.74 186.58 194.82 224.15 20% Shares Volume Traded (Mn) 1,442.44 1,818.77 1,498.10 1,886.19 7,697.64 414% Equity Turnover (KShs. Bn) 29.76 46.23 43.21669705 58.39 263.87 511% Bonds Turnover (KShs. Bn) 666.46 684.12 635.02 1,081.30 621.23 -2% End-Period Mkt. Cap (KShs. Bn) 2,417.06 2,784.47 2,944.54 3,230.73 3,762.00 28%

14 Industry Brief - June 2026
PENSION CONTRIBUTION TRENDS
This section highlights trends in pension contributions.
4.1 Total Pension Contribution
Figure 7: Total half-yearly pension contributions (Kshs.Bn)
Pension contributions have maintained a consistent upward trajectory over the last three years. For the half-year period ending in June 2026, total contributions reached Ksh 165.29 billion, representing a 28.83% year-on-year increase from the Ksh 128.30 billion recorded in June 2025 as shown in Figure 7 (and a 5.24% growth compared to December 2025). This sustained growth continues to be driven by the phased implementation of the NSSF Act, 2013—which saw further increases to the upper and lower earnings limits in February 2026—alongside improved employer compliance and a rise in active scheme membership.. 4.0 62.73 70.26 83.1 105.7
116.1 118.8
128.3
157.1
165.3
Jun-22 Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 Dec-25 Jun-26 Amount in Billion Retirement Benefits Sector - June 2025 Industry Brief

15 Industry Brief - June 2026
4.2 Contributions to Post-Retirement Medical Funds
Figure 8: Total PRMF Contributions (Kshs. Mn)
For the period ended June 2026, quarterly contributions to Post-Retirement Medical Funds reached Ksh 220.7 million as illustrated in Figure
8. This represents an 18.08% increase from
December 2025 (Ksh 186.9 million) and a 34.08% year-on-year growth compared to the Ksh 164.6 million recorded in June 2025. This sustained growth is largely driven by an increasing number of retirement benefit schemes establishing and actively funding these accounts to support members’ post-retirement healthcare needs.
35.3 36.3 39.7
133.2 135.2
149.8
164.6
174.6
186.9
204.3
220.7
Dec-23 Mar-24 Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 Amount in Million Growing 24.12% year-on-year, PostRetirement Medical Funds are becoming an increasingly important pillar of retirement financial security.

Industry Brief - June 2026 16
FUNDS HELD BY FUND MANAGERS AND APPROVED ISSUERS
5.1 Funds held by Fund Managers
Table 4: Funds Under Management by Fund Managers
Table 5:
5.0
FUND MANAGER TOTAL DEC 2025 TOTAL JUN 2026 % CHANGE Genafrica Asset Managers Limited 703,683,931,478 773,936,613,348 10.0% Co-Optrust Investment Services Limited 466,821,157,631 467,481,806,011 0.1% African Alliance Kenya Asset Management 320,388,787,878 397,590,492,653 24.1% Sanlam Investments East Africa Limited 316,318,189,628 346,894,851,837 9.7% Old Mutual Investment Group Limited 227,006,555,146 152,910,949,269 -32.6% ICEA Lion Asset Management Limited 103,320,487,267 110,017,568,081 6.5% CIC Asset Management Limited 45,706,908,156 48,821,194,688 6.8% ABSA Asset Management Ltd 9,783,799,850 11,716,341,036 19.8% NCBA Investment Bank Ltd 8,754,995,363 9,831,592,059 12.3% Britam Asset Managers Kenya Limited 7,691,611,320 5,846,543,979 -24.0% Globetec Asset Management Limited 5,110,971,904 4,755,359,098 -7.0% Investcent Partners Limited 657,324,826 1,654,578,461 151.7% Mayfair Asset Managers Limited 793,477,724 1,049,923,516 32.3% Jubilee Asset Management Limited - 887,463,690 - Zimele Asset Management Company Limited 762,153,517 836,115,445 9.7% Star Capital Management Ltd 1,618,541 529,993,800 32645.2% Kuza Asset Management Limited 348,529,334 443,676,599 27.3% Dry Associates Limited 315,147,477 341,419,763 8.3% Cytonn Asset Managers Limited 93,809,847 88,240,044 -5.9% Lofty Corban Investments Limited 69,186,300 86,579,408 25.1% Fusion Investment Management Limited 43,949,446 49,697,716 13.1% Amana Capital Limited 47,229,819 28,958,399 -38.7% Genghis Capital Ltd 30,082,627 19,798,589 0.0% VCG Asset Management Limited 4,488,188 18,577,615 313.9% Total 2,217,754,393,267 2,335,838,335,104 5.3% Retirement Benefits Sector - June 2025 Industry Brief

17 Industry Brief - June 2026
Total Assets Under Management (AUM) held by fund managers grew by 5.3% in the first half of 2026, rising from Ksh 2,217.75 billion in December 2025 to Ksh 2,335.84 billion. The period also marked the entry of Jubilee Asset Management Limited, bringing the total number of active managers to 24. The market remains highly concentrated, with the top five managers, Genafrica, Co-Optrust, African Alliance, Sanlam and Old Mutual, controlling 91.56% of the managed assets. Significant AUM fluctuations during the period were largely driven by competitive inter-manager transfers of existing scheme funds.
5.2 Assets Under Approved Issuers
Table 6: Funds Held by Approved Issuers
Assets under management in guaranteed funds grew by 14.3% during the first half of 2026, reaching Ksh 597.07 billion across 19 active issuers. The segment also remains highly concentrated, with the top five issuers, Jubilee, ICEA Lion, Britam, Kenindia, and GA Life, controlling 83.4% of the total portfolio. A major highlight for the period was a shift in market leadership: Jubilee Insurance grew by 15% to reach Ksh 136.61 billion, overtaking ICEA Lion. Mid-tier issuers also recorded strong upward momentum, most notably Kenindia (27%) and Sanlam Life (28%). ISSUER NAME TOTAL DEC 2025 TOTAL JUN 2026 % CHANGE The Jubilee Insurance Company of Kenya Limited 119,125,783,854 136,611,240,421 15% ICEA Lion Life Assurance Limited 126,179,981,465 135,353,660,462 7% Britam Life Assurance Company Kenya Limited 77,271,688,116 87,216,832,735 13% Kenindia Assurance Company Limited 63,661,274,133 81,044,671,706 27% GA Life Assurance Limited 50,361,071,740 57,842,372,224 15% CIC Life Assurance Limited 20,176,318,194 22,997,836,363 14% Pioneer Assurance Company Ltd. 13,182,648,546 15,371,764,902 17% Equity Life Assurance Company( Kenya) Limited 11,689,460,611 13,714,803,526 17% APA Life Assurance Limited 10,803,237,163 12,791,024,723 18% UAP Life Assurance Limited 5,201,763,182 6,110,505,245 17% Madison Life Assurance Kenya Limited 5,786,589,533 6,090,291,737 5% The Kenyan Alliance Insurance Company Limited 5,238,811,401 5,568,572,714 6% Prudential Life Assurance Kenya 3,876,215,408 4,790,576,772 24% Sanlam Life Insurance Limited 3,666,622,117 4,686,727,484 28% Liberty Life Assurance Kenya Ltd 2,998,261,175 3,274,164,910 9% Kenya Orient Life Assurance Limited 1,973,403,961 2,180,040,899 10% Geminia Insurance Company Limited 791,355,370 926,255,513 17% The Monarch Insurance Company 361,137,147 381,872,751 6% Capex Life Assurance Company Limited 34,647,782 112,373,520 224% KUSCO Mutual Assurance Limited 13,387,221 Total 522,393,658,119 597,065,588,607 14%

Industry Brief - June 2026 18
5.3 Funds Under Internal Management
As of June 2026, total internally managed assets stood at Ksh 152.91 billion as shown in Table 7. This portfolio comprises Ksh 56.11 billion in internally managed funds by the NSSF, alongside Ksh
96.80 billion held directly by other schemes, predominantly as immovable property. These funds represent
a segment of the industry’s asset base and operate independently of the portfolios overseen by external fund managers and approved issuers,
Table 7: Funds Under Internal Management
Type June 2026 Value
NSSF Internally Managed 56,114,968,521.39 Other Schemes Internally Managed (Property) 96,799,319,602.11 Total 152,914,288,123.50 “Risk comes from not knowing what you’re doing.” — Warren Buffett

19 Industry Brief - June 2026
6.0
ASSETS HELD BY NATIONAL SOCIAL SECURITY FUND (NSSF) This section provides insights and trends for funds held by NSSF.
6.1 NSSF Growth in Assets
Figure 9: NSSF Growth in Investment Assets
As of June 2026, the National Social Security Fund’s (NSSF) total assets reached Ksh 742.37 billion, marking a 19.01% increase from the Ksh 623.79 billion recorded in December 2025 as illustrated in
Figure 9. This growth represents a net addition of
Ksh 118.58 billion over the six-month period.
This accelerated asset accumulation continues to be heavily driven by increased member contributions following the ongoing implementation of the revised limits under the NSSF Act, 2013. Of this total, externally managed assets grew by 16.46% to reach Ksh 686.25 billion, up from Ksh
589.28 billion in December 2025. The remaining
Ksh 56.11 billion is managed internally. Following the consolidation of NSSF’s external mandates in 2024, the external portfolio remains evenly distributed among three fund managers: African Alliance (Ksh 237.69 billion), Genafrica (Ksh
230.21 billion), and Co-optrust (Ksh 218.36 billion.
295.65 308.26 328.11
402.00
453.88
558.07
623.79
742.37
Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 Dec-25 Jun-26 Assets in Ksh. Billions Retirement Benefits Sector - June 2025 Industry Brief

Industry Brief - June 2026 20
6.2 NSSF Asset Allocation
Table 8: NSSF Investment Managers Allocation
Figure 10: 2025 vs 2026 Asset Allocation by NSSF1
1 The asset figures above represent investment assets as per the RBA Classification. As of December 2025, the NSSF also held ksh. 16.15 billion in accrued income and Ksh. 17.08 billion in Trade and Other receivables, which was not considered in the calculation of investment Assets. Fund manager Assets in Millions Dec-23 Jun-24 Dec-24 Jun-25 Dec-25 Jun-26 Genafrica Asset Managers Limited

59,161.39

70,827.54

133,487.44

177,779.28

198,797.32

230,207.38
Old Mutual Investment Group Limited

52,922.21

62,350.55

African Alliance Kenya Asset Management

51,283.89

77,908.28

171,728.54

162,882.26

197,631.08

237,691.09
Sanlam Investments East Africa Limited

30,220.62

36,183.48

Co-optrust Investment Services Limited

52,912.14

63,993.81

119,376.66

177,302.50

192,855.82

218,355.53
CIC Asset Management Limited

31,419.52

37,431.98

Total

277,919.77

348,695.64

424,592.64

517,964.04

589,284.22

686,254.00
371.08
168.23
42.70
38.61
31.71
31.71
25.60
13.41
10.61
4.42
3.54
0.77
379.85
107.56
38.08
34.15
18.11
0
13.73
17.02
9.79
2.82
2.68
0
Government Securities
Listed Preference and ordinary shares Immovable property Offshore investments Cash and Demand Deposits Commercial Paper, Non Listed Bonds Private Equity and Venture Capital Corporate Bonds Fixed and Time Deposits REITS Unlisted shares and equity instruments PPP Infrastructure Amount in Ksh Billion Jun-26 Dec-25

21 Industry Brief - June 2026
Figure 11: NSSF Investment Class Allocation
As shown in Figure 11, the vast majority (72.7%) of NSSF’s portfolio remains concentrated in Government Securities and Listed Shares. Government Securities constitute the largest allocation at Ksh 371.08 billion (50.0%), followed by Listed Preference and Ordinary Shares at Ksh 168.23 billion (22.7%). The remaining 27.4% of the portfolio is distributed across Other asset classes, such as bank deposits, corporate debt, and alternative investments, at Ksh
122.00 billion (16.4%), Immovable Property at Ksh
42.70 billion (5.8%), and Offshore Investments at
Ksh 38.61 billion (5.2%).
6.3 Contributions to NSSF
Contributions to the National Social Security Fund (NSSF) reached Ksh 48.81 billion for the halfyear ending June 2026. This represents a 12.26% increase from the Ksh 43.48 billion reported in December 2025, and a 9.19% year-on-year growth compared to Ksh 44.70 billion in June 2025 as shown in Figure 12. The continued growth is driven by the progressive implementation of statutory contribution limits under the NSSF Act, 2013, alongside increased active membership. Government Securities 50% Listed Preference and ordinary shares 23% Immovable property 6% Offshore investments 5% Other 16%

Industry Brief - June 2026 22
17.60
25.40
35.55
37.32
44.70
43.48
48.81
Jun-23
Dec-23
Jun-24
Dec-24
Jun-25
Dec-25
Jun-26
Amount in Ksh Billion
Year 1 NSSF Act
Implementation
Year 2 NSSF Act
Implementation
Year 3 NSSF Act
Implementation
Year 4 NSSF Act
Implementation
This strategic allocation represents a critical shift toward alternative, inflation-hedging investments. By channeling domestic capital into national infrastructure, the sector not only diversifies member portfolios against traditional market volatility but also plays a direct, sustainable role in financing Kenya’s long-term economic development. PIONEERING INFRASTRUCTURE INVESTMENTS
Figure 12: Contributions to NSSF

23 Industry Brief - June 2026
KEY INDUSTRY RATIOS
7.1 Liquidity ratio
The ratio gauges pension funds’ capacity to meet their financial obligations arising from pension payments in the short–to medium–term. Liquid assets comprise:
(i) Currency.
(ii) Deposits and other financial assets that are available either on demand or within one year or less; and (iii) Securities and funds that are actively traded or easily redeemable in open financial markets (such as government securities, listed equities, and mutual funds). Liquidity Ratio 7.0 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 𝑟𝑟𝑟𝑟 𝑟𝑟 = 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝑃𝑃 𝐹𝐹 𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿𝐿 𝐴𝐴 𝑇𝑇 𝑇𝑇 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝑃𝑃 𝐴𝐴 ∗ 100 Liquid Pension Assets Ksh. 2,147.40 billion 69.59% Total Pension Assets Ksh. 3,085.82 billion Retirement Benefits Sector - June 2025 Industry Brief

Industry Brief - June 2026 24
As of June 2026, the industry’s aggregate liquidity ratio stood at 69.59%. This position indicates that the pension sector has more than sufficient readily available cash to comfortably meet its immediate financial obligations without selling long-term, illiquid assets. However, it is important to note that actual liquidity levels will vary from scheme to scheme based on their specific demographic profiles and investment strategies. 2 The GDP value used is as at end of March 2026 and was obtained from KNBS reports. 3 Data obtained from Pensions Markets in Focus 2024 - https://www.oecd.org/en/publications/ pension-markets-in-focus-2024_b11473d3-en/support-materials.html
7.2 Pension to GDP Ratio
The Pension Asset to GDP provides insight into the size and significance of a country’s pension system relative to its economic output. Its computation serves the following purposes:
(i) Economic Weight of Pension Systems: It quantifies the value of accumulated pension assets as a share of the national economy. (ii) Investment Capacity: A higher ratio points to a maturing pension system with a substantial pool of capital available to drive long-term investments in the economy. Pension to GDP Ratio The industry’s pension-to-GDP ratio currently stands at 17.20%2 , an improvement from the 16.05% recorded in the previous period. While Kenya’s ratio is still below the OECD average of 92.2%3 , the sector’s continued growth is encouraging. The current ratio comfortably outpaces the 15.2% average reported for non-OECD countries. 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝑡𝑡 𝐺𝐺𝐺𝐺 𝑅𝑅𝑅𝑅 = 𝑇𝑇 𝑇𝑇 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝐴𝐴 𝑇𝑇 𝑇𝑇 𝐶𝐶 𝐶𝐶 𝐶𝐶𝑦𝑦′ ∗ 100 Total Pension Assets Ksh. 3.0856 trillion
17.20 %
Total GDP
Ksh. 17.944
Trillion1

25 Industry Brief - June 2026
7.3 Asset Allocation Ratios
Overall, all investment categories were within the statutory investment limits set out in the Retirement Benefits Regulations, as shown in Figure 13. However, it is important to note that the figure represents a general industry average and compliance with the statutory guidelines varies from scheme to scheme.
Figure 13: Pension Asset Investments vs Statutory Limits
46.35%
14.37%
7.97%
19.35%
1.18% 1.56% 3.43% 2.05%
0.25%
1.40% 0.64% 0.00% 1.42% 0.02% 0.02% 90% 70% 30% 100% 20% 30% 15% 5% 5% 10% 30% 5% 10% 10% 10% Government Securities Quoted Equities Immovable Property Guaranteed Funds Listed Corporate Bonds Fixed Deposits Offshore Cash Unquoted Equities Private Equity Real Estate Investment Trusts(REITs) Traded derivatives Commercial paper, non-listed bonds Debt instruments for the financing of infrastructure Other Assets Current % Statutory Limit The top four asset classes now account for 88.04% of total pension assets, reflecting a gradual broadening of investments compared to the 91.51% concentration recorded in June 2025.

Industry Brief - June 2026 26
8.0
INDUSTRY DEVELOPMENTS AND FUTURE OUTLOOK
8.1 Legislative Developments
The Finance Act, 2026, which took effect on 1 July 2026, introduced reforms designed to improve member welfare, promote long-term savings, and ease administrative burdens for scheme administrators. Key provisions directly impacting the pension sector include:
(i) Exemption of Death Benefits from Income Tax: The Act amended the First
Schedule to the Income Tax Act.
This amendment exempts lump-sum death benefits paid out from registered retirement benefit schemes to nominated beneficiaries from income tax. (ii) Recalibration of Employer Gratuity Contributions: Section 5(4) of the Income Tax Act was amended to clarify the rules surrounding gratuity arrangements. Onwards gratuity payments are only tax-exempt if the gratuity relates to a continuous service contract of at least three years (including extensions). Furthermore, these exempt contributions are capped at 31% of the employee’s total earnings and emoluments over the contract period. This exemption, however, excludes employees already benefiting from standard retirement deductions under Section 22A of the Income Tax Act. (iii) Removal of Segregated Pension Funds Rule: The Act deleted Subsection (5A) of Section 22 of the Income Tax Act. Schemes are no longer legally mandated to maintain separate accounting and tracking mechanisms for pre-1991 legacy pension funds versus post1990 contributions. This legislative clean-up reduces the ongoing compliance, reporting, and accounting burdens for legacy scheme administrators. Retirement Benefits Sector - June 2025 Industry Brief

27 Industry Brief - June 2026
8.2 NSSF Act (2013) Implementation and Contribution Changes
I mplementation of the NSSF Act (2013) Year 4 contribution structure officially took effect in February 2026. This transition expanded the pensionable earnings bands, which, as expected, has had a direct, positive impact on industry-wide liquidity and asset accumulation. Furthermore, at its 8th Annual General Meeting on 6th February 2026, the NSSF declared a 17% Net Interest on members’ savings for the 2024/2025 financial year. The changes are summarized in Table 9.
Table 9: NSSF Contribution Changes
8.3 The Virtual Asset Service Providers (VASP) Regulations, 2026
The Virtual Asset Service Providers (VASP) Regulations, issued in July 2026, operationalized the regulatory framework established by the VASP Act of 2025. Co-administered by the Capital Markets Authority (CMA) and the Central Bank of Kenya (CBK), these regulations introduced licensing, governance, and supervisory standards for digital asset activities, including virtual asset management, investment advisory, and the tokenization of realworld assets. Implications for the Pension Sector:
While direct exposure to digital assets is not currently a standard practice for retirement benefit schemes, this regulatory milestone presents several forward-looking implications for industry:

Foundation for Alternative Diversification:
The regulations legally recognize and provide a framework for the “tokenization of real-world assets.” As fund managers seek untapped capacity in alternative investment categories, tokenized infrastructure, private equity, or real estate could eventually emerge as viable, regulated avenues for long-term portfolio diversification, subject to statutory investment limits.
Institutional-Grade Safeguards: The
framework prioritizes institutional and consumer protection by mandating the strict segregation of client assets, ensuring they are shielded from creditor claims in the event of a service provider’s insolvency. Category Year 3 Year 4 (Effective February 2026) Lower Limit (Tier 1) 8,000 9,000 Total Contribution by Employee (Tier 1) 480 540 Total Contribution by Employer (Tier 1) 480 540 Total Tier 1 NSSF Contributions 960 1,080 Upper Limit (Tier 2) 72,000 108,000 Contribution on Upper Limit (6% of Upper Limit less Lower Limit) 64,000 99,000 Total Contribution by Employee (Tier 2) 3,840 5,940 Total Contribution by Employer (Tier 2) 3,840 5,940 Total Tier 2 NSSF Contributions 7,680 11,880 Total NSSF Contributions 8,640 12,960

Industry Brief - June 2026 28

Systemic Risk Mitigation: The regulations
introduce rigorous anti-money laundering (AML) protocols, minimum capital requirements, and cybersecurity standards, thus creating a formally integrated market structure that aligns better with institutional investment risk profiles.
8.4 Future Outlook
The retirement benefits sector is wellpositioned for sustained expansion through the second half of 2026, having successfully crossed the Ksh 3 trillion asset mark. This steady growth is expected to continue, largely driven by the ongoing implementation of the NSSF Act,

The continuous inflow of the enhanced
contributions ensures a strong liquidity base for the industry and provides significant capital for long-term national investments. On the investment front, the macroeconomic environment is shifting. Following a monetary easing cycle that saw the Central Bank Rate (CBR) lowered in the first half of 2026, yields on new government securities and traditional fixed-income assets are expected to moderate. With inflation remaining stable, fund managers are increasingly incentivized to look beyond traditional asset classes. There is now substantial headroom for schemes to diversify their portfolios into alternative, higher-yielding investments. Additionally, the Kenyan shilling has maintained relative stability against the US Dollar throughout the first half of the year. This predictable exchange rate environment offers schemes a stable window to strategically manage their offshore allocations, allowing them to optimize returns while reducing domestic concentration risk.

Industry Brief - June 2026 29
CONTACT
US:
Retirement Benefits Authority
Rahimtulla Towers - 14 Floor, th Upperhill, Nairobi P.O. Box 57733 - 00200, Nairobi Tel: 0202809000 Email: Info@rba.go.ke www.rba.go.ke