Local Authorities Pension Trust (Laptrust) has returned to compliance with the Retirement Benefits Authority (RBA) investment regulations following the Nairobi Securities Exchange (NSE) listing of Family Bank Kenya Limited.
Previously, Laptrust exceeded the RBA’s 5% exposure limit on unquoted investments, with its unlisted assets accounting for 8.19% of its Sh28.17 billion portfolio as of December 2025. This breach was largely due to increased stakes in private equity, including Family Bank, where Laptrust’s holding rose from Sh649.83 million to Sh835.51 million in the prior year. Other unquoted investments included CPF Financial Services (Sh1.46 billion) and Consolidated Bank of Kenya (Sh13.88 million).
The turning point came on June 23, 2026, when Family Bank’s shares were introduced to the NSE, with 1.66 billion shares traded at Sh18 each. This reclassified Family Bank from an unquoted to a quoted equity, reducing Laptrust’s unquoted investment exposure to about 3% of its portfolio.
Joseph Rono, Senior Group Executive Director at CPF Group, Laptrust’s parent company, said the bank’s listing and subsequent share price rally above Sh29 have brought Laptrust back within regulatory limits. He highlighted that the scheme’s unquoted equity allocation now stands at roughly 3%, comfortably below the 5% ceiling.
Beyond regulatory compliance, the Family Bank investment has yielded strong returns for Laptrust’s 9,943 members. Rono noted that the stake, initially acquired in 2012, has generated returns exceeding five times the original capital, excluding dividends, with a revaluation gain of over 40% following the listing.
“This investment exemplifies Laptrust’s long-term strategy of targeting high-potential opportunities to create value and enhance member returns, while maintaining prudent portfolio and regulatory management,” Rono said.
Despite this positive development, Laptrust’s net assets available for benefits declined slightly to Sh27.68 billion in 2025 from Sh28.19 billion the previous year. The decrease reflects the scheme’s closed status, with no new members admitted since 2011 and ongoing benefit payouts. Investment income also dipped to Sh3.61 billion from Sh3.76 billion in 2024, while provisions for outstanding sponsor contributions increased to Sh6.28 billion from Sh5.31 billion.
Contributions revenue rose 10.98% to Sh8.79 billion, driven mainly by arrears and interest on delayed payments.
At the end of 2025, Laptrust’s portfolio was diversified with government securities comprising 46.96% (Sh13.23 billion), immovable property 14.48%, quoted investments 10.63%, real estate investment trusts 9.42%, unquoted investments 8.19%, and other asset classes making up 10.32%.
