Retirement Benefits Schemes Q2’2024 Performance Report
Sep 8, 2024
According to the ACTSERV Q2’2024 Retirement Benefits Schemes Investments Performance Survey, segregated retirement benefits schemes recorded a 6.6% return in Q2’2024, up from the 0.1% recorded in Q2’2023. The increase was largely supported by the performance of fixed income investments made by the schemes which recorded an 8.0% gain, 7.3% points above from the 0.7% return recorded in Q2’2023, on the back of declining interest rates across the yield curve, occasioned by easing inflation, decreased government domestic borrowing appetite and the relatively stable exchange rate. This week, we shall focus on understanding Retirement Benefits Schemes and look into the quarterly performance and current state of retirement benefits schemes in Kenya with a key focus on Q2’2024. In our previousQ2’2024 Unit Trust Funds Performance Note
Sep 7, 2024
Unit Trust Funds (UTFs) are a form of Collective Investment Scheme that pools capital from multiple investors to invest in a diversified portfolio of assets, managed by a Fund Manager, with the goal of generating returns for the investors. Expert fund managers oversee these funds, allocating the pooled capital into a variety of securities such as equities, bonds, and other approved financial instruments. The objective is to achieve returns that match the fund’s specific goals. Following the release of the Capital Markets Authority (CMA) Quarterly CIS Report – Q2’2024, we examine the performance of Unit Trust Funds for the period ended 30th June 2024. These funds have seen consistent growth in total Assets Under Management (AUM) and are one of the preferred investment choices in Kenya. Additionally, we will delve into the performance of Money Market Funds, which are a sub-set...Kenya’s Real Estate Investment Trusts (REITs) H1’2024 Report
Aug 25, 2024
Following the release of the H1’2024 results by all four authorized Real Estate Investment Trusts (REITs) in Kenya, the Cytonn Real Estate Research Team undertook an analysis of the financial performance of the REITs and identified the key factors that shaped the performance of the sector. For the earnings notes of the various REITs, click the links below: ILAM Fahari I-REIT H1’2024 Earnings Note LapTrust Imara I-REIT H1’2024 Earnings Note Acorn I-REIT and D-REIT H1’2024 Earnings Note The in the report we will assess the financial performance of the current REITs in the market during H1&r...Nairobi Metropolitan Area (NMA) Land Report 2024
Aug 18, 2024
In July 2023, we released the Nairobi Metropolitan Area Land Report 2023, which highlighted that the Nairobi Metropolitan Area (NMA) land sector recorded an improvement in performance with the average annual price appreciation coming in at 4.5% in FY’2022/23, 1.3% points higher than the 3.2% appreciation recorded in FY’2021/22. The performance represented an 11-year average price appreciation CAGR of 9.1%, with the average selling price for land coming in at Kshs 128.5 mn in FY’2022/23, from Kshs 47.9 mn in 2011. The performance during this period was mainly driven by the increased demand for Un-serviced land in satellite towns of the Nairobi Metropolitan and serviced land...Enhancing the Effectiveness of Kenya’s Housing Fund
Aug 11, 2024
As reported by the World Bank, Kenya's urbanization rate stood at 3.7% in 2023, surpassing the global average of 1.7%. Additionally, the country's annual population growth rate averaged 2.0%, higher than the global average of 0.9%. This rapid urbanization and population growth have created a substantial demand for housing in Kenya, which greatly outstrips the available supply. The Centre for Affordable Housing Finance Africa (CAHF) estimates that Kenya faces an annual housing deficit of 80.0%. Currently, only 50,000 new houses are built each year, while the demand stands at approximately 250,000 units, leaving a shortfall of about 200,000 homes annually. The Centre...