Pension fund returns in Kenya fell to 18.2% in the 12 months to June 2026 from 29.4% a year earlier, according to a survey by Zamara.
The decline was mainly driven by weaker fixed-income performance, as lower interest rates reduced gains from government bonds and other fixed-income assets.
Average fixed-income returns dropped to 12% from 27.3%, while equity returns improved to 61.2% from 50.3%. Zamara said pension schemes lost some of the capital gains that had boosted returns in 2025 after bond yields started rising again.
The survey covered 402 schemes managing Ksh1.508 trillion. Data from the Retirement Benefits Authority shows that pension funds still hold about 74% of their Ksh2.83 trillion in fixed-income investments, making bond performance the biggest driver of overall retu
