DEFINED BENEFITS FUND PERFORMANCE
The overall Fund return on investment for the quarter ended September 2022 stood at 1.6% compared to a return of 1.8% recorded in the quarter ended September 2021. The slight difference in the performance was attributed to the negative valuations recorded in the Treasury Bonds and offshore markets. The Fund value reduced from Kshs 18.30 billion as at 31st December 2021 to Kshs 16.80 billion as at 30th September 2022. This is because Defined Benefits (DB) Fund being a closed fund, there are no contributions to the Fund. The income received from investments is used to pay benefits for members retiring and those leaving service.
Outlook
According to the Central Bank of Kenya, the economy is expected to perform better, leaving behind months of electioneering and uncertainty. However, though Kenya’s economy has been resilient, the multiple recent shocks depict the urgency of improving social protection mechanisms to cushion the most vulnerable households. Against fiscal challenges, persistent inflationary pressures, unpredictable weather patterns, and challenges emanating from global factors, indicators still point to softer but gradual economic recovery.
Outlook
According to the Central Bank of Kenya, the economy is expected to perform better, leaving behind months of electioneering and uncertainty. However, though Kenya’s economy has been resilient, the multiple recent shocks depict the urgency of improving social protection mechanisms to cushion the most vulnerable households. Against fiscal challenges, persistent inflationary pressures, unpredictable weather patterns, and challenges emanating from global factors, indicators still point to softer but gradual economic recovery.