Government Securities 

Government securities are issued by the government to raise funds from public and institutional investors with  promise to pay back the principal amount borrowed plus interest. There are mainly two types: Treasury bills (Short term between 91 days to 1 year) and Treasury bonds (Long term between 2 years to 30 years). They’re considered safe because they’re backed by the government.  The government uses the proceeds from the sale of these securities to finance its budgetary needs, fund infrastructure projects, and manage its debt obligations. 

The Board of Trustees reassures you the financial market’s volatility are cyclical and that both Scheme’s strategies have modelled a long-term investment approach that accounts for short-term effects on the investment fund. We hold the belief to ensure a sustainable kitty to all Scheme Members.

The following charts provide the distribution of the investments based on portfolio allocation and market value of investments.

Defined Benefits Scheme

5-Year Trend on Assets Under Management

The Scheme’s Investment Portfolio recorded a 17.87% growth over 5 years to close at
Ksh 9.171 billion as of 30th September 2024.

Asset Allocation

The charts below provide the allocation to different asset classes based on market value of investments.

5-year Overall Scheme Performance

The Chart below provides the Scheme’s 3 months return for the period ending 30th September over
the past 5 years. The Scheme’s return for the period 1st January 2024 to 30th September 2024 is 14.05%
trailing the IPS benchmark of 14.45%. The positive performance was mainly attributed to equities market
as large capitalization stocks rallied in the month.

Defined Contributions Scheme

5-Year Trend on Assets Under Management

The Investment Portfolio recorded a 71.15% growth over 5 years to close at Ksh.12.472 Billion as of 30th September 2024.

Asset Allocation

The charts below provide the allocation to different asset classes based on market value
of investments. All Scheme assets are compliant with the IPS limit. We continuously restructure the
portfolio and aim to diversify to investments with high returns that’s within the permissible
risks as per the 10-year strategy.

5-year Overall Scheme Performance

The Chart below provides the Scheme’s 9 months return for the period ending 30th September 2024
over the past 5 years. The Scheme’s return for the period 1st January 2024 to 30th September 2024 is
13.18% outperforming the IPS benchmark of 12.12%. The positive performance was attributed to positive
bond revaluation, an improvement in equities as the market recovered from anti-fnance bill protests
and positive performance from the offshore investments.