Deposit Administration (DA) funds in Kenya recorded significant growth in assets and improved declared returns in 2025, according to the Survey of Insured Deposit Administration Returns released by Zamara Group.
The survey found that total assets held under deposit administration arrangements grew to approximately K Shs 475.2 billion by the end of 2024, up from K Shs 399.3 billion in 2023, continuing the steady long-term expansion of Kenya’s retirement benefits industry.
Speaking on the findings, Neha Datta, Head of Investment Consulting at Zamara said, “the sustained growth in DA funds highlights the increasing importance of guaranteed investment solutions within retirement schemes, particularly during periods of economic and market volatility.”
Annual contributions into DA funds also increased significantly, rising to K Shs 88.8 billion in 2024, a 34% growth from the previous period, representing the strongest growth recorded over the past decade. The report attributes this increase to stronger inflows into guaranteed funds following changes in NSSF contribution rates, improved declared interest rates, and anticipated uptake driven by enhanced pension tax incentives introduced in late 2024.
“The strong growth in both contributions and assets under deposit administration arrangements demonstrates growing confidence among retirement scheme sponsors and trustees in guaranteed funds as a stable long-term savings vehicle. Trustees are increasingly seeking investment structures that provide predictability, downside protection and competitive declared returns,” she added.
According to the survey, the average declared return for deposit administration funds rose to 12.3% in 2025, compared to 11.4% in 2024 and 8.9% in 2023. The improved performance reflects a relatively stable interest rate environment alongside recoveries in equity and offshore asset class returns.
The survey covered 17 insurance companies offering deposit administration services in Kenya, based on a minimum five-year reporting period.
Over the longer term, the findings point to resilient industry performance:
- The 5-year industry average declared return stood at 10.1%, with provider averages ranging between 5.9% and 11.8% per annum.
- The 10-year industry average declared return stood at 9.4%, with annualised returns ranging from 5.6% to 11.3% per annum.
The report also assessed risk-adjusted performance and return variability across providers, noting that differences in volatility are influenced by varying investment mandates, client profiles, and insurer risk appetites.
Group Pension Schemes accounted for 54% of total DA contributions in 2024, while Personal Pension Plans contributed 24% and Umbrella Schemes accounted for 22%, underscoring the growing role of institutional retirement savings in driving market growth.
The survey analyses returns declared by insurers offering deposit administration services in Kenya and provides pension scheme stakeholders with comparative insights into fund performance across the market.
The report further notes that while deposit administration funds offer guaranteed minimum returns and professional fund management, trustees should continue evaluating providers based on long-term consistency, governance structures, volatility of returns, and alignment with scheme objectives.
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