Octagon Umbrella fund Grows to KES3.2Bn Investment Return

• Octagon Umbrella fund grows to KES3.2bn after 19.1pc investment return

The Octagon Umbrella Retirement Benefits Scheme has grown its fund value to KES3.2 billion after its Aggressive investment portfolio delivered a 19.1 per cent return in 2025, outperforming the umbrella fund market average of 12.37 per cent.

The Scheme’s Balanced Fund returned 14.8 per cent, while the Conservative Fund delivered 11.6 per cent, with all three investment options recording positive returns during the year.

“The growth of the Octagon Umbrella reflects the increasing importance of professionally managed retirement arrangements that give employers efficiency while providing members with investment choice and access to their retirement information,” said Michael Komen, Head of Retail Octagon Africa.

“Members  now need solutions that combine disciplined investment,appropriate risk management, transparency and easy access to information.

Our focus is to ensure that the growth of the Scheme translates into long-term value and greater financial security for members,” said Komen.

The growth has been accompanied by rising membership, with more than 200 participating employers as at March 2026.

Its fund value increased from KES2.9 billion in 2025 to KES3.2 billion in March 2026, while membership had a 22 per cent rise.

Octagon Umbrella is positioned within this growing segment, offering employers access to pooled retirement administration and investment management while giving members three investment choices based on their risk appetite and investment horizon.  The Conservative Fund is designed for members seeking greater stability and invests in guaranteed funds, fixed-income securities and Treasury bills.

The Balanced Fund combines equities, bonds, cash equivalents and guaranteed funds, while the Aggressive Fund has greater exposure to equities, real estate investment trusts and private equity.

The Scheme’s investment performance also comes against a stronger market backdrop.Kenyan equities generated a 104 per cent return over the two years to June 2026,ranking Kenya among the top-performing global equity markets over the period.

Strong corporate earnings and sustained domestic investor participation have supported the market,while valuations remain attractive relative to global and emerging-market peers.

According to the market outlook by Sanlam Allianz Investments Limited,Kenyan equities are expected to remain supported by strong company fundamentals,improving earnings and increased corporate activity.

It also recommends maintaining offshore exposure to global equities to strengthen diversification, while cautioning that geopolitical risks could cause short-term volatility.

Octagon has also expanded digital access to retirement services through its Octagon Pension Administration System (OPAS).

Members can access statements and update beneficiary information online,while employers can post contributions and approve member requests digitally.

According to the latest Industry Brief from the Retirement Benefits Authority (RBA) for June 2026,total pension assets under management in Kenya grew by 12.66 per cent over the six months between December 2025 and June 2026, expanding from KES2,811 billion to KES3,167 billion.

Over the full one-year period from June 2025, total assets increased by 25.13 per cent (or KES 636 billion).

The RBA has attributed part of the shift to smaller standalone corporate schemes moving towards umbrella arrangements,which can help employers reduce administrative demands and overhead costs while benefiting from pooled services and investment management.

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