Pension fund returns show divergent trends in Botswana and Kenya

Pension fund performance across different regions showed varying trends during the 2025-2026 period. The Botswana Public Officers Pension Fund (BPOPF) saw its assets under management rise by 10.3 percent to P128.34 billion for the year ending March 2026. This growth was driven by a diversified strategy, with significant gains in local equities, which rose by 23.57 percent, and offshore fixed-interest investments, which surged by 83.63 percent. However, the fund noted a slowdown in contribution growth due to reduced government recruitment.

In Kenya, average pension fund returns fell to 18.2 percent for the 12 months ending June 2026, down from 29.4 percent the previous year. According to administrator Zamara, this decline was primarily due to lower returns from fixed income assets, which dropped to 12 percent from 27.3 percent. While equity returns improved to 61.2 percent, the dip in bond performance—caused by rising inflation and a pause in interest rate cuts by the Central Bank of Kenya—offset the gains. The shift followed a period of high capital gains from government paper that had supported the previous year's performance.