In the first quarter of 2020, the DC Fund recorded a return of negative 5.06% compared to industry weighted average performance of negative 7.7% in the same period as provided by Zamara Consulting Actuaries Schemes Survey.

Just like in the DB Fund, the unfavorable performance was due to the poor performance of the stock market because of the Covid-19 concerns. As at the end of Q1 2020, the Fund value was KShs. 15.50 Billion down from 16.58 Billion in Q4 2019.

The Fund performance for the last five quarters is as below:

Outlook

The International Monetary Fund’s (IMF) latest World Economic Outlook projections for 2020 pegs Kenya GDP growth rates at 1% in 2020, down from 5.6% in 2019. According to IMF, Covid-19 pandemic will cause a 3% contraction in the global economy in 2020 which will be much worse than during the 2008-2009 global financial crisis.