Growing awareness about the importance of retirement planning is driving more Kenyans to join pension schemes, with new data from the County Pension Fund (CPF) showing a sharp rise in membership and asset growth across its portfolios.

According to CPF, the number of active members increased to 94,116 in 2024 after 17,523 new members were registered. This boost, together with an expanded sponsor base now including 194 entities—ranging from county governments and affiliated agencies to private institutions—helped the fund nearly double its net assets from Sh36.97 billion in 2023 to Sh51.67 billion this year.

The CPF Individual Pension Scheme, which targets self-employed individuals and those in the informal sector, also posted notable growth. Its net assets rose by 42.4 per cent, climbing from Sh2.88 billion to Sh4.11 billion.

The scheme declared a 10 per cent interest rate for the year. “This growth reflects a growing awareness and appreciation of personal retirement planning, especially among the self-employed and informal sector workers,” said CPF Senior Group Executive Director Joseph Rono.

CPF Group Chief Executive Officer Hosea Kili attributed the fund’s performance in 2024 to sound financial management and a solid understanding of members’ evolving needs. “We are keenly focused on growing our schemes through prudent management and strategic investments. We will continue to work closely with the regulator and seek the invaluable support of the national government to ensure that policies are always aligned with the best interests of our members,” he said.

Meanwhile, the Local Authorities Pension Trust (Laptrust)—which does not admit new members as it operates as a closed defined benefit scheme—continued to post steady growth. Net assets rose from Sh26.99 billion to Sh28.10 billion, while the number of pensioners grew to 9,655. Active membership slightly dropped to 13,782 due to natural attrition.

CPF also reported mixed but positive performance in some of its specialised offerings. Membership in the Salih Fund, which is Shariah-compliant, rose to 9,895, although its asset value dropped slightly from Sh1.5 billion to Sh1.1 billion.

The Post-Retirement Medical Fund (PRMF), introduced in 2022 to help cover healthcare costs in retirement, saw its asset base grow from Sh32.8 million to Sh55.2 million. Membership increased from 370 to 464.

As part of its long-term growth strategy, CPF is investing in alternative asset classes such as infrastructure.

It is currently acting as lead arranger and transaction advisor in key national projects, including the Nairobi–Mombasa Expressway, in collaboration with Everstrong Capital, and the Talanta Stadium Asset-Backed Security Bond with Linzi Fin Co.

Policy changes have also given the sector a boost.

The government’s decision to exempt retirement gratuities from taxation and the recent enactment of the Tax Laws (Amendment) Act, 2024—which increased tax-free pension contribution limits and simplified regulatory compliance—were welcomed by industry players as key enablers of growth.