County workers' pension savings grew by Sh15.8 billion to Sh79.8 billion last year, driven by an 8.8 percent return and growth in the number of workers covered under the schemes.
The CPF Group, which administers pension for the County Pension Fund (CPF) and Laptrust Defined Benefits (DB) Scheme, reported that net assets in the two schemes grew from Sh63.9 billion in 2023 to Sh79.8 billion in 2024.
The CPF scheme, which covers county government employees, saw its assets grow by 39.8 percent to Sh51.67 billion.
“An interest rate of 8.8 percent was declared, an impressive achievement amid a volatile economic environment. Active membership surged to 94,116 following the addition of 17,523 new members, while the sponsor base expanded to 194, comprising county governments, affiliated agencies, and private institutions,” CPF Group said.
The pensions administrator released the data during its schemes’ annual general meeting on Thursday.
Retirement benefits administered under the Laptrust DB Scheme grew from Sh26.99 billion in 2023 to Sh28.1 billion in 2024, even as membership dropped from 14,771 to 13,782.
The Laptrust DB Scheme covers staff of the defunct local authorities in Kenya and some workers who were seconded from the authorities to counties. Its membership continues to shrink as more of the workers retire and natural attrition.
CPF Group credited its investment approach and confidence among employers entrusting it with administering their employees’ retirement benefits for the growth.
“We are keenly focused on growing our schemes through prudent management and strategic investments. The schemes' continued strong performance highlights our meticulous approach to fund management and our deep understanding of our members' needs,” said CPF Group managing director Hosea Kili.
The administrator also reported that its Shariah-compliant fund, Salih, grew membership to 9,895 despite its assets falling from Sh1.5 billion to Sh1.1 billion during the year.
The CPF Individual Pension Scheme recorded the biggest growth of 42.4 percent, with assets rising from Sh2.88 billion to Sh4.11 billion.
“Looking ahead, we are exploring investment opportunities that will not only enhance returns but also contribute positively to national economic development,” said Maurice Nduranu, CPF Group’s board chairperson.
