Octagon Umbrella Retirement Fund Grows to Sh3.2 Billion After 19.1pc Investment Return
By Peace Muthoka
NAROK, Kenya — The Octagon Umbrella Retirement Benefits Scheme has grown its assets to Sh3.2 billion after its aggressive investment portfolio delivered a 19.1 per cent return in 2025, outperforming the umbrella fund market average of 12.37 per cent.
The scheme’s growth comes amid rising membership and increased interest in umbrella retirement arrangements, which allow employers to provide retirement benefits through pooled administration and investment management.
According to Octagon Africa, the scheme’s balanced investment fund returned 14.8 per cent in 2025, while the conservative fund recorded an 11.6 per cent return. All three investment options posted positive returns during the year.
Michael Komen, Head of Retail at Octagon Africa, said the growth reflected the importance of professionally managed retirement arrangements that offer employers greater administrative efficiency while giving members investment choices and access to their retirement information.
“Members now need solutions that combine disciplined investment, appropriate risk management, transparency and easy access to information. Our focus is to ensure that the growth of the Scheme translates into long-term value and greater financial security for members,” Komen said.
The scheme’s performance has been accompanied by an increase in participating employers and members. By March 2026, it had attracted more than 200 employers, while membership had grown by 22 per cent.
Its fund value rose from Sh2.9 billion in 2025 to Sh3.2 billion in March 2026, reflecting an expansion in the scheme’s assets and membership.
Octagon Umbrella is also expanding its reach across the country, including Narok and the wider Rift Valley region, as more employers consider umbrella arrangements for their employees’ retirement benefits.
Under this model, employers access pooled retirement administration and investment management services, while members select investment options based on their risk appetite and investment horizon.
The scheme offers three options designed to accommodate different investment preferences. The conservative fund targets members seeking greater stability and invests in guaranteed funds, fixed-income securities and Treasury bills.
The balanced fund spreads investments across equities, bonds, cash equivalents and guaranteed funds, while the aggressive fund has greater exposure to equities, real estate investment trusts and private equity.
The scheme’s returns come against a stronger performance by Kenya’s equity market. Kenyan equities generated a 104 per cent return over the two years to June 2026, placing the market among the top performers globally over that period, according to the press release.
Strong corporate earnings and sustained participation by domestic investors have supported the market, while Kenyan equities have continued to offer attractive valuations relative to global and emerging-market peers.
Market analysts expect company fundamentals, improving earnings and increased corporate activity to continue supporting equities. However, geopolitical risks could trigger short-term market volatility, underscoring the importance of considering risk when making investment decisions.
Beyond investment performance, Octagon has expanded digital access to retirement services through its Octagon Pension Administration System (OPAS).
The platform allows members to access their statements and update beneficiary information online. Employers can also post contributions and approve member requests digitally, reducing the need for some administrative processes to be handled manually.
The expansion comes as Kenya’s retirement benefits sector continues to record growth in assets under management.
The Retirement Benefits Authority’s June 2026 industry brief shows that pension assets under management increased by 12.66 per cent in the six months to June 2026, rising from Sh2.811 trillion in December 2025 to Sh3.167 trillion.
Over the 12 months from June 2025, pension assets grew by 25.13 per cent, an increase of Sh636 billion, according to the authority’s figures.
The RBA has attributed part of the sector’s shift to smaller standalone corporate retirement schemes moving to umbrella arrangements. Such arrangements can help employers reduce administrative demands and overhead costs while benefiting from pooled services and professional investment management.
As the sector expands, Octagon’s growth highlights the role of umbrella retirement schemes in providing employers with an alternative way to manage staff retirement benefits while giving members a choice of investment options and digital access to their retirement information.
