Members of the Enwealth Umbrella Fund earned a net return of 18.05 percent in 2025 as the retirement scheme recorded growth in assets, membership and contributions amid rising uptake of the NSSF Tier II opt-out programme.
The fund’s net assets increased by 12 percent to Sh1.185 billion in 2025, up from Sh1.056 billion the previous year, while total contributions reached Sh205.3 million.
The latest growth continues a strong expansion trajectory for the retirement scheme, whose assets have increased more than six-fold over the past five years from Sh196 million in 2021.
Membership also increased by 28 percent to 1,762 in 2025 from 1,374 in 2024, with small and medium-sized enterprises (MSMEs) accounting for a significant share of the new members.
The growth has been supported partly by increasing participation in the National Social Security Fund (NSSF) Tier II opt-out arrangement, which allows employers to remit the mandatory Tier II contributions to an approved occupational or umbrella retirement scheme instead of the NSSF.
Contributions received through the Tier II opt-out arrangement rose sharply to Sh30.62 million in 2025 from Sh1.82 million in 2023.
The Tier II contributions accounted for about 15 percent of the fund’s total contributions during the year, highlighting the growing role of the arrangement in expanding Enwealth’s membership and assets.
Enwealth said contributions from the Tier II opt-out programme had continued into 2026 as more MSMEs joined the fund.
The developments were highlighted during the fund’s Annual General Meeting, where members were informed that growth in assets and income was expected to continue during 2026.
The fund’s positive outlook comes against a challenging global economic environment, with oil prices, inflation, trade and financial markets facing heightened risks from geopolitical tensions, including the conflict in the Middle East.
The domestic economy also faces potential risks from weather conditions, with anticipated El Niño conditions expected to affect agricultural production and food prices.
The shilling, however, is expected to remain relatively stable against the US dollar, supported by strong diaspora remittance inflows.
Enwealth said its fund managers would continue to rely on diversification and risk management to protect members’ retirement savings and navigate changes in the economic environment.
The pension administrator has also increased investment in digital services as it seeks to make it easier for MSMEs and their employees to join and manage their retirement savings.
Among the initiatives is an online onboarding platform for MSMEs participating in the NSSF Tier II opt-out programme.
The digital platform integrates retirement savings with gratuity, Additional Voluntary Contributions (AVCs) and Post-Retirement Medical Fund (PRMF) options.
Members can also access their pension statements, retirement planning tools and benefit projections through the online portal.
The system further allows members to update their personal information and beneficiary details digitally, reducing the need for physical visits to access basic pension services.
The increased adoption of digital services comes as pension administrators seek to attract more workers in the formal and informal sectors into retirement savings schemes.
For Enwealth, continued growth in MSME participation and Tier II opt-out contributions could provide an important source of new assets as the fund seeks to expand its membership and investment base.
The scheme’s performance also comes amid increased efforts to encourage Kenyan workers and employers to strengthen retirement savings, particularly among employees and business owners outside traditional large corporate employers.
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