KenGen (Kenya Electricity Generating Company) has acquired the eight-storey Pension Plaza 1 and 12-storey Pension Plaza 2 on Kolobot Road from its staff pension scheme.
The Sh1.92 billion transaction lowers the fund’s property exposure from 42.4% to 20.39%, aligning it with Retirement Benefits Authority limits while unlocking cash to pay retirees.
The deal helps the pension fund meet investment rules and improve liquidity.
KenGen Plaza II
KenGen Pension Plaza II is a 12-storied building that stands on a 3-acre piece of prime land along Kolobot road. The building houses KenGen Staff Retirement Scheme offices, KenGen Offices, KenGen Foundation Offices, Restaurant and a Gym.
The KenGen Staff Pension Scheme still owns several other properties, including the fully-furnished one and two bedroomed apartments, located close to Parklands Sports Club, Aga Khan Hospital, MP Shah Hospital, Sarit Centre, Village market and the US Embassy.
The Defined Contributions (DC) Scheme is an occupational Scheme of KenGen staff. The scheme, which was established with effect from 1st January 2012, is governed by its Trust Deed and Rules (TDR).
The objective of the Scheme is the “provision of retirement benefits to employees of KenGen and the participating employers upon their retirement or earlier withdrawal and to the dependents of deceased members” as provided in the Trust Deed of the Scheme.
The KRA staff Pension Scheme received the Contracting out certificate by Retirement Benefits Authority(RBA) on the 26th of May 2023. Therefore, the Scheme manages members NSSF Tier II contributions as per the NSSF Act of 2013.
Latest figures from the Retirement Benefits Authority( RBA) shows that the landscape of Kenya’s retirement benefits sector is shifting.
While the absolute number of individual pension schemes is shrinking, the financial muscle of the industry is expanding at a staggering pace. Total pension assets under management now stands at KSh 2.83 trillion in 2025. This impressive growth was fuelled by a 29% surge in member contributions and 24% increase in investment income performance.
The Kenyan pension market exhibits a massive concentration of wealth at the very top. A tiny elite class of “mega funds”—those valued at KSh 10 billion and above—effectively commands the market.
Just 55 schemes control nearly two-thirds of Kenya’s entire retirement asset pool, highlighting a stark concentration of financial power.
On the other end of the spectrum, smaller retirement funds are facing a squeeze. The industry noted a distinct reduction in both micro-schemes (valued under KSh 100 million) and mid-sized schemes (valued between KSh 100 million and KSh 500 million).
This shrinkage is happening due to three main factors:
Smaller, standalone corporate schemes are winding up or merging into larger “umbrella funds” to reduce administrative burdens and lower overhead costs. There has also been a notable stagnation in the registration of new occupational (employer-sponsored) schemes.
Healthy financial growth is naturally pushing some smaller schemes out of the lower tiers and into higher valuation brackets.
The Bottom Line: The pension sector is maturing. Driven by regulatory shifts, cost efficiencies, and strong investment returns, the market is moving away from a fragmented landscape of small, isolated funds toward a highly consolidated, resilient ecosystem dominated by financial giants.
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