Defined Benefits (DB) Fund Performance
The DB Fund closed at fund value of 19.23 billion in quarter three 2017 from Kshs. 18.70 billion in quarter four 2016. The increase is majorly attributed to investment income earned during the year. The Fund registered a performance of 7.3% for the 9 months ended 30th September 2017 with an overall Fund’s performance of 13.3% for 12 months ended 30th September 2017.
The graph below shows Fund’s growth

Outlook
The National Treasury and World bank have revised down the economic growth for 2017 to between 5%-5.5% from the earlier projected growth of 6%. This is attributed by the prolonged election cycle coupled with slow private sector credit growth.
The inflation is expected to remain below CBK’s upper target of 7.5% due to subdued food prices and low consumer demand. Food inflation is expected to decrease as supply increases due to expected improvement of the weather conditions and government intervention.
In the equity market asset class, subdued economic growth and the expected structural changes in the banking sector a presences weaker corporate earnings in the near term.
Lastly, The Kenyan shilling is expected to remain stable against the USD supported by well-matched supply and demand forces.

Defined Contributions (DC) Fund Performance
The DC Fund grew from Kshs.11.34 billion in quarter four 2016 to Kshs. 12.94 billion in quarter one 2017. The Fund’s performance for 9 months up to 30th September 2017 stood at 9.3% and the Fund’s one-year performance up to 31st March 2017 performance stood at 7.0% which was below the target overall benchmark of 15% for the period under review. This was attributed by poor performance in the capital market.
Fund growth

Outlook
The National Treasury and World bank have revised down the economic growth for 2017 to between 5%-5.5% from the earlier projected growth of 6%. This is attributed by the prolonged election cycle coupled with slow private sector credit growth.
The inflation is expected to remain below CBK’s upper target of 7.5% due to subdued food prices and low consumer demand. Food inflation is expected to decrease as supply increases due to expected improvement of the weather conditions and government intervention.
In the equity market asset class, subdued economic growth and the expected structural changes in the banking sector a presences weaker corporate earnings in the near term.
Lastly, The Kenyan shilling is expected to remain stable against the USD supported by well-matched supply and demand forces.