CPF Group pension funds posts mixed record, eyes new growth

Business
By Brian Ngugi | Jul 10, 2024

Counties Pensions Fund (CPF) Chief Executive Officer Hosea Kili during a past interview. [File, Standard]

The CPF Group Pension Funds, encompassing the Local Authorities Pension Trust (LAPTRUST), the County Pension Fund, and the CPF Individual Pension Plan, has posted a mixed record marked by sustained growth and resilient performance in the year ended 2023.

Its LAPTRUST DB scheme reported a reduction in net assets from Sh31.26 billion in 2022 to Sh26.99 billion in 2023, largely due to increased normal withdrawals as the scheme's membership ages and transitions to retirement. Active membership numbers also declined from 15,842 at the beginning of 2023 to 14,771 by year-end, attributed to retirement and other natural exits.

However, the CPF Individual Pension Plan (IPP) exhibited remarkable growth, with membership surging by 113 per cent to 23,229 by the end of 2023, compared to 10,931 members in 2022, with a closing fund value of Sh2.88 billion.

The County Pension Fund maintained a steady performance, with net assets closing at Sh36.9 billion in 2023. Active membership saw a significant increase of 12.2 per cent rising to 76,593 from 68,280 in the previous year.

"In our quest to address the current challenges facing our economy, stimulate economic recovery, and bolster resilience, it is imperative that we embrace accountable governance and collective effort," said the Prime Cabinet Secretary and the Cabinet Secretary, Ministry of Foreign and Diaspora Affairs, Musalia Mudavadi.

CPF Group unveiled its Strategic Plan 2024-2028.

"As we navigate through a complex global economic environment, the Group is well-prepared with comprehensive strategic measures to mitigate risks and capitalize on opportunities," noted CPF Group Managing Director Hosea Kili.

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