Liberty Kenya Holdings PLC has announced a zero return for the pooled guarantee pension portfolio for the year 2023.
This comes after the Board of Directors of Liberty Life Assurance Limited reviewed its performance for the year ended 31st December 2023 which recorded a dip in return on investment.
“The low investment performance reported under this portfolio is predominantly due to the low returns from the investment market, particularly the equities market, which delivered a negative 28 per cent return, and the Treasury bonds market, due to fair value losses resulting from a rapid rise in yields at the primary auctions in 2023,” stated Liberty Kenya Managing Director (MD) Nkoregamba Mwebesa.
“Moreover, all the necessary fund statements were furnished to the Trustees to facilitate the scheme audit process for the just-ended financial period as of 31st December 2023. These were
finalised, signed and filed with the regulator on 31st March 2024 in compliance with section 55 of the Retirement Benefits Act,” added Mwebesa.
However, for the five-year period between 2024-2028, Liberty will offer a guaranteed rate of 9 per cent to provide the much-needed cushion against the tough economic climate prevailing in the country.
Moreover, Liberty banks on the rate to help the fund recover from the lower returns that this environment created.