Nairobi, Feb. 4 -- Pension fund returns declined to 24.8 percent in the year to December 2025 from 28.8 percent in 2024 as lower returns from fixed income assets weighed down improved yields from equities and offshore investments.

Analysis by pension funds administrator Zamara shows that the average return from fixed income assets stood at 19.7 percent in the year, down from 25.2 percent in 2024, with equities returns rising to 63.4 percent from 51.6 percent, and offshore assets at 14.5 percent compared to a negative 0.2 percent in 2024.

The returns comfortably beat the average annual inflation of 4.07 percent in 2025, marking the second year in a row that pension savings were protected from erosion in real terms. In 2024, inflation ave...