Equity Life Assurance has grown the combined assets of its two retirement schemes to more than Ksh 900 million, signalling growing confidence among Kenyans who are increasingly planning for life after employment.
The latest performance figures show that the insurer’s Individual Savings and Retirement Plan and Equity Income Drawdown Fund have continued to attract more members and contributions, reflecting a gradual shift towards long-term financial planning amid rising living costs and economic uncertainty.
The Individual Savings and Retirement Plan recorded the strongest growth. Assets under management increased from Ksh 313 million at the end of 2024 to Sh796 million by June 30, 2026, marking one of its fastest expansion periods. The scheme, which had enrolled 408 members by the end of 2025, delivered a net return of 13.6 per cent during the year.
The Equity Income Drawdown Fund also maintained steady growth. Its assets rose from Ksh 44 million at the end of 2024 to Ksh 104 million by December 2025 before increasing further to Sh109 million by the end of June this year. The fund posted a net return of 13.8 per cent in 2025.
Combined, the two retirement products now manage assets worth more than Sh905 million, highlighting the increasing number of Kenyans choosing voluntary retirement savings alongside employer-sponsored pension plans.
The growth comes at a time when many workers are becoming more aware of the financial challenges that come with retirement. Longer life expectancy, inflation and the rising cost of healthcare have made it increasingly important for individuals to build savings that can support them after they stop earning a regular salary.
Equity Life Assurance Managing Director and Principal Officer Angela Okinda said the strong performance reflects growing public confidence in retirement planning.
She said the continued increase in assets and membership shows that more Kenyans now consider the Individual Savings and Retirement Plan a credible option for securing their financial future. Okinda added that the company’s retirement solutions are designed to help members remain financially stable after leaving formal employment by providing a dependable source of income in retirement.
Financial advisers have for years encouraged Kenyans to begin saving early, arguing that regular contributions made over a long period generate stronger returns than waiting until the final years before retirement. Pension schemes also offer tax benefits under Kenya’s retirement savings framework, making them an attractive long-term investment option.
The Individual Savings and Retirement Plan targets people who want to build pension savings independently, including self-employed professionals, business owners and employees seeking to supplement their workplace pensions.
Meanwhile, the Equity Income Drawdown Fund is designed for retirees who have already accumulated pension benefits and prefer to receive periodic income while keeping the remaining funds invested. The arrangement allows retirees to continue earning investment returns instead of withdrawing their entire pension at once.
Corporate Trustee Anthony Kilavi attributed the schemes’ performance to favourable economic conditions and prudent investment decisions. He said the funds delivered returns that exceeded the industry average and expressed confidence that they would continue performing strongly in 2026.
Kenya’s pension industry has continued to expand in recent years as regulators, employers and financial institutions step up campaigns to promote a savings culture. Industry players say improved financial literacy, digital investment channels and greater awareness of retirement planning are encouraging more people, including those working in the informal sector, to enrol in voluntary pension schemes.
As households continue to grapple with economic pressures, retirement savings are increasingly becoming an essential part of personal financial planning rather than something to think about only towards the end of a career.
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