Local Authorities Pension Trust (Laptrust) has returned to regulatory compliance after the listing of Family Bank Kenya Limited on the Nairobi Securities Exchange (NSE) cut its exposure in unquoted investments to below the five percent ceiling.
The defined benefit scheme, which stopped admitting new members in June 2011, had exceeded the Retirement Benefits Authority (RBA) cap of five percent on unquoted assets at the end of December 2025, with exposure standing at 8.19 percent of its Sh28.17 billion investment portfolio.
The breach in investment was largely driven by holdings in private equity stakes, including Family Bank where it had raised its ownership to Sh835.51 million last year from Sh649.83 million in the previous year. Other unquoted investments were in CPF Financial Services (Sh1.46 billion and Consolidated Bank of Kenya (Sh13.88 million).
However, the June 23, 2026 listing of Family Bank by introduction, which saw 1.66 billion shares admitted to NSE trading at Sh18 each, has reclassified the lender from an unquoted to a quoted equity. This has effectively cut Laptrust’s unlisted exposure to about three percent.
Joseph Rono, senior group executive director at CPF Group (the parent company of Laptrust) said the listing of Family Bank and the rally of the share price to above Sh29 has brought the scheme back within regulatory limits.
“The recent listing of Family Bank on the NSE has significantly reduced Laptrust’s exposure to unquoted investments, with the scheme’s allocation to unquoted equity now reverting to approximately three percent of the total investment portfolio and bringing it back within the RBA prescribed limit,” Mr Rono said in a response to our queries.
In addition to the compliance, the Family Bank transaction has also delivered strong returns for the scheme’s 9,943 members.
Mr Rono said the investment in the bank has now realised a revaluation gain of more than 40 percent following the listing. He added that the original stake acquired in 2012 has generated returns exceeding five times the initial capital, excluding dividends earned over the years.
“This investment is a strong demonstration of Laptrust’s long-term investment philosophy of identifying high-potential opportunities, creating value through strategic exposure and ultimately enhancing returns for members while maintaining prudent portfolio management and regulatory compliance,” he said.
The development comes against a backdrop of a slight contraction in the scheme’s overall asset base. Laptrust’s net assets available for benefits fell to Sh27.68 billion in 2025 from Sh28.19 billion a year earlier.
The decline was attributed to shrinking membership due to natural attribution because it is a closed scheme and therefore gradually paying out benefits without admitting new members.
The scheme generated Sh3.61 billion in investment income during the year, down from Sh3.76 billion in 2024.
Additional provisions for outstanding sponsor contributions rose to Sh6.28 billion from Sh5.31 billion further weighed on overall performance.
Despite the dip, the fund remains above its target asset level of Sh23.16 billion. Contributions revenue rose 10.98 percent to Sh8.79 billion, largely driven by growing arrears and interest on delayed remittances.
Prior to the Family Bank listing, government securities made up Sh13.23 billion or 46.96 percent of Laptrust’s investment at the end of last year, followed by immovable property (14.48 percent), quoted investments (10.63 percent), real estate investment trust (9.42 percent) and unquoted investments (8.19 percent). Some 10.32 percent were held in other classes.
