Kenya Pension Schemes Post Record KSh16.6 Billion Capital Gains | Dawan Africa

Kenya July 8 2026 – Kenya’s pension industry posted a record KSh16.6 billion in capital gains from the sale of government bonds and listed shares in 2025, buoyed by declining interest rates, a strong recovery at the Nairobi Securities Exchange (NSE) and improved corporate earnings.

New data released by the Retirement Benefits Authority (RBA) shows pension schemes realized KSh11.3 billion from the disposal of Kenya Government securities and KSh5.3 billion from the sale of quoted equities during the year, marking the highest gains ever recorded from the two asset classes.

The performance represents a dramatic improvement from 2024, when pension funds earned just KSh2.05 billion from government securities and KSh986.5 million from listed shares, highlighting the strong rebound in Kenya’s capital markets over the past year.

According to the RBA, the surge in investment returns was largely driven by favourable conditions in both the fixed-income and equity markets.

“The increase was primarily driven by substantial gains from disposal of Kenya government securities and quoted shares, reflecting favourable movements in both the fixed-income and equity markets during the year,” the authority said.

The gains from bond trading came as interest rates continued to ease following a series of monetary policy adjustments by the Central Bank of Kenya (CBK).

In bond markets, prices move inversely to interest rates, meaning previously issued bonds carrying higher coupon rates become more valuable when market yields decline.

This allowed pension schemes holding older, high-yield government securities to sell them at a premium in the secondary market, locking in substantial capital gains.

At the same time, improved investor confidence and stronger corporate earnings lifted share prices on the Nairobi Securities Exchange, enabling retirement schemes to realize significant profits from equity disposals.

The record earnings were sufficient to offset losses incurred elsewhere in pension portfolios. RBA data shows schemes recorded KSh456.9 million in losses from the disposal of real estate assets during the year, reflecting the continued weakness in Kenya’s property market.

Nevertheless, the strong performance in bonds and equities ensured overall investment returns remained positive.