Zamara has recently released its annual report on pension performance 2019 in Kenya. It reported that over the past 10 years, the pension industry assets have not changed despite the growth in fund size.
According to the Zamara Chief Executive Officer, Sandeep Raichura, the stagnation was attributed to the lack of flexibility by the pension schemes to try and add private equity as the pension funds can invest 10% of the portfolios in private equity but only less than 1% has been allocated in that area.
The report further stated that 70% of the allocations are in fixed incomes and they are mostly government bonds, while 25% are in equities.
The Retirement Benefits Authority has allowed the pension industry to invest in a wide variety of asset classes so as to help Kenyans save more for their old age.
About two-thirds of Kenyans are not prepared for retirement due to various factors such as high cost of living, lack of a saving culture, financial indiscipline, and financial illiteracy.
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