It is with great pleasure that I welcome all members and all stakeholders to our 11th AGM. I am delighted to present the pension scheme report for the year ended 30th June 2014. The year ended was characterised by challenging investment environment arising from security concerns and reduced government expenditure.In spite of the challenges, the growth momentum and returns witnessed in the previous financial year continued to the year under review albeit at a lower rate. The objective of the Scheme is to provide cash and pension benefits to members on retirement or relief to families in the unfortunate demise of a member. Our vision is to make the Pension Scheme the most viable, profitable and reliable Scheme.
The Value of the Schemes investment portfolio grew by 7.04% from KES 6.36 Billion in 2013 to KES 6.81Billion as at 30th June 2014. This investment growth was supported by the income realised in the year and a general rise in market value of investment securities. In the last five years the Scheme has had a significant growth, from assets of KES. 5.3 Billion in 2010 to KES. 6.8 Billion in 2014. The investment growth over the last five years to 30th June 2014 is as shown in the figure below:
As at the close of the year, the Schemes investment portfolio was distributed as follows:
The year 2013/2014 was our Scheme Actuarial valuation year. An independent valuation of the Scheme as at 30thJune 2014 showed an actuarial surplus of 17% representing surplus funding value of KES 1,008.2 Million. Favourable investment returns during the inter-valuation period resulted in the funding ratio growing from 103% in 2011 to 117% in 2014.The Trustees will endeavour for top level performance, which ensures continued growth of the Schemes fund value above the required minimum funding level.
I would like to appreciate the Trustees who served with me during the year for their support and dedication. I would particularly want to thank Mrs. Jane J. Tuitoek - Kigen and Mr. Caxton Njuga for their service to the pension Scheme until the end of their terms in April and May 2014 respectively. I also wish to congratulate the new members to the Board namely; Ms. Felicity Biriri, Mr. Charles Tanui, Eng. Washington Oluoch andEng. Lucy Kariuki.I also take this opportunity to congratulate Ms. Felicity Biriri for being elected as the Chairperson of the Board.
Finally, I wish to appreciate the following for their dedicated support to the Scheme; The Sponsor(KPC Board), KPC Management, all members of the pension Scheme, The Secretariat - headed by Dr. Aiyabei, The Scheme Custodian - Standard Chartered Bank, The Fund Managers - Co-op Trust Investment Services Limited, Genesis Kenya Investment Management Ltd and StanLib Kenya, The Scheme Auditor - EY, The Scheme advocate - Prof. Mumma and Co. and Alexander Forbes Financial Services. Thank you all and God Bless You.
GEORGE W. SIMIYU
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