During the quarter ended March 2021 the Fund registered a return on investment of 2.82% compared to -4.96% registered during the same period in 2020. The improved performance was due to the good equities’ performance in the month of January and February 2021. The Month of March saw a dip in performance as a result of new covid-19 surge and lockdowns. The fund value stood at ksh 17.4 billion as at March 2021.

Outlook

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.