During the quarter ended December 2020, the Fund registered a return on investment of 1.7% compared to a return of 3.2% during same period in 2019. The Fund’s full year performance stood at 5.2% compared to a return 0f 10.5% in the year 2019. The downturn was attributed to the negative performance in the Equity portfolio which was adversely affected by the COVID-19 pandemic, particularly during the first quarter of the year. The Fund value stood at Kshs 18.6billion as at December 2020.
The Kenyan economic growth is expected to remain subdued due to the shattered investors’ confidence and heightened measures taken against Covid-19. The World Bank and the International Monetary Fund have projected a growth of less than 1% owing to adverse impact on horticulture, construction, tourism and manufacturing sectors. At the global level, the economy is expected to contract sharply by –3 percent in 2020, much worse than what was experienced in the 2008–09 financial crisis. However, should the Covid-19 pandemic fade in the second half of the financial year and imposed containment efforts gradually unwound, the global economy could expand by 5.8 percent as economic activity normalizes.