James Macharia’s contribution to Pension Stories focuses on the role of local investment in supporting economic growth while generating returns. His perspective connects the mobilisation of pension capital with the development of deeper domestic capital markets.

The relationship between institutional investment and market maturity is central to this discussion. Pension fund investment in domestic alternatives can deepen capital markets, improve price discovery and reduce dependence on foreign capital.

Kenya’s pension assets stood at 15.03% of GDP in December 2025, according to the Retirement Benefits Authority, up from approximately 12% five years earlier. The supplied research places South Africa’s pension assets at approximately 145% of GDP, with pension funds allocating around 4–5% to unlisted equities, offering a reference point for a more developed domestic capital market.

Behind this comparison is the opportunity to put local savings to productive use. Greater participation by domestic pension funds can help broaden the capital available to businesses, supporting economic growth alongside the pursuit of returns for retirement savers.