It is with pleasure that I present this annual report of the financial year 2013/2014. As you are aware our investments are largely in the local market. The year ended was characterised by challenging investment environment arising from security concerns within the country and reduced government expenditure as the government waited to introduce the Eurobond.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.

2013/2014 Results

Revenue and income: Our revenue in 2013/14 was KES 699.5 Million, down by 1.7% percent from 711.2 Million in 2012/2013. Operating net income was slightly down by 1.9 percent, to KES 366 Million from 373 Million in 2012/2013, this was attributed to reduced income from investment. Investments returns for this year stood at 15%.

Investment: The Board has continued to diversify the Schemes investment portfolio by considering various investment options that will realize growth in the Fund value. During the year Trustees acquired 50.141 acre piece of land in Kitengela. The process of developing the property is ongoing and it is the hope of Trustees that the Scheme will generate above normal return in this investment.

The Value of the Schemes investment portfolio grew by 27.2% from KES 2.5 Billion to KES 3.2 Billion. This investment growth was supported by contributions received in the year and a general rise in market value of investment securities.

The Schemes investment portfolio as at 30th June 2014 was as follows:

As Trustees of the Scheme, we know that members depend on us to protect their investments and deliver the level of returns needed to meet their benefits obligations. We have undertaken to meet this task by inculcating a culture that strives to avoid undue risk and preserve the fund value of the Scheme. Board members understand that role placed on them require high integrity standards, therefore, we constantly and actively seek top level performance and value from all our service providers.

Exceptional performance begins with exceptional people, and we aim to attract and retain the best. Because we share expertise and insights within the pension industry and across our diverse businesses, we have created an environment that supports the professional development of our team members through various trainings.

During the year, there were changes in the Board of Trustees arising from the end of trusteeship term of some members. I wish to congratulate the new members to the Board namely; Eng. Lucy Kariuki, MrsJane Nakodony, Mr Samuel Odoyo and Mr Francis. To the Trustees who retired, namely Eng. Elias Karumi, Mrs Jane Tuitoek and Mrs Gloria Khafafa, we express our sincere gratitude for their hard work while serving on the Board andwish them well in their other engagements.

Finally, I wish to appreciate the following for their dedicated support to the Scheme; The Sponsor, All members of the pension Scheme, The Secretariat, The Scheme Custodian - Standard Chartered Bank, The Fund Manager - Pinebridge, The Scheme Auditor - EY, The Scheme advocate - Prof. Mumma and Co. and Alexander Forbes Financial Services. Let us all join hands to build a great Scheme.

Have a question or concern?

Please feel free to call us on or Email us through:- 0709- 740000