Alternative Investments by Pension Funds in Kenya

The pension sector in Kenya has continued to grow both in numbers and in assets. As at June 2019, the pension assets stood at Kshs. 1.245 trillion and 13.2 percent of GDP.

Despite the investment guidelines providing for 14 asset classes in which the pension schemes can invest in, the pension schemes in Kenya have predominantly, invested in the ‘big two traditional assets’; government securities and equities. As at June 2019, the investment in the two assets classes was 58 percent of the total pension assets.  

Cover Story-Exclusive interview with EPPF's Chief Executive & Principal Officer-Ms Linda Mateza

"I have worked in the financial industry for 20 years. My first role in the pensions sector was in 2002, when I joined the Transnet Retirement Fund as an investment manager. Since then,
I have had the privilege of working in various other roles, including heading the Investments and Actuarial function at the Government Employees Pension Fund, which was my most recent role before I joined the Eskom Pension and Provident Fund in 2019. My academic qualifications are in Finance and Economics".

investment loss recovery; an opportunity for south african funds

When corporate fraud or misconduct is discovered and made public, often the price of the relevant stock or bond drops significantly.  Then, investors lose value in their portfolios.    Under these facts, it makes sense that pension funds and investors should have the opportunity to recover their losses.

Although investment loss recovery is well established in the U.S. and Europe,  strangely, it is virtually unknown in South Africa.  Given the exposure that South African pension funds have to the  global investment markets, this is worrying. https://pensions-africa.com/latest-articles/item/142-investment-loss-recovery-an-opportunity-for-south-african-funds