February 2025
17Feb

Kenya. Tax reforms usher in new era of retirement security

Kenyans can now contribute more towards their pension without significantly reducing their disposable income following the passing of the Tax Laws (Amendment) Act 2024. The new reforms, which came into effect in December last year, signify a new era of retirement security with a focus on financial stability and healthcare planning, as discussed at a pension stakeholder workshop in Nairobi over the weekend. According to John Keah, the Assistant Director of Market Conduct and Industry Development at the Retirement Benefits Authority...

February 17, 2025
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January 2025
20Jan

Kenya. NSSF commits to reforms including expedited processing of benefits

National Social Security Fund (NSSF) has announced the launch of several new initiatives targeting workers across various sectors of the economy in a bid to improve social security coverage and financial inclusion. The NSSF, which plays a vital role in providing social security to the workforce, said if was impelementing reforms aimed at expanding its coverage, increasing transparency, and promoting financial literacy among contributors. These changes are part of a broader effort to modernize the social security system and make it...

January 20, 2025
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08Jan

Kenya. Govt Introduces New Tax Laws on Pensions & Retirement Benefits

The Retirement Benefits Authority (RBA) has announced new tax reforms on pensions and retirement benefits. In a notice, the authority indicated that the reforms were introduced by the Tax Laws (Amendment) Act 2024, effective December 27, 2024. Further, the notice indicated that the changes would address current economic challenges by offering increased tax-free pension contribution limits among other changes. “The Retirement Benefits Authority (RBA) is informing stakeholders and the public about important reforms introduced by the Tax Laws (Amendment) Act 2024, which...

January 8, 2025
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December 2024
09Dec

Kenya. Jua kali workers to receive formal certification under proposed law

Kenyan artisans working in the informal sector, popularly known as jua kali, could soon receive formal recognition for their skills, following a proposed law which seeks to establish a structured system for assessing and certifying their expertise. If passed, the Bill would make it mandatory for the National Industrial Training Authority (NITA) to create a system for assessing individuals who have acquired skills through non-formal, informal, or experiential learning methods. Kisumu Central MP Joshua Oron introduced the Bill known as the...

December 9, 2024
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02Dec

Unpaid pension funds rise to Sh47.16 billion, leaving Kenyan retirees at risk

Kenyan workers are at risk of financial struggles when they retire, as unpaid pension contributions by public universities and county governments increased by 12.3 per cent to reach Sh47.16 billion in the year ending June 2024. According to the latest report by the Retirement Benefits Authority (RBA), the amount of money deducted from workers' salaries for their retirement savings but not sent to pension schemes grew from Sh42 billion. This puts many pensioners at risk of having insufficient funds for their...

December 2, 2024
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November 2024
05Nov

CPF unveils new fund to support Kenya’s unpensionable workers

CPF Financial Services has introduced the Taifa Pension Fund, a new pension scheme targeting Kenya’s unpensionable workforce across both private and public sectors. The fund, managed by Standard Investment Bank, provides flexible retirement solutions for those without traditional pension access, such as informal sector workers. Taifa Pension Fund offers a range of benefits including high returns, global market exposure, and diversified investment opportunities. It serves as an umbrella fund, allowing participating employers to pool resources, thus reducing the overall cost per member...

November 5, 2024
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October 2024
25Oct

Kenya. Workers in informal sector to receive regulated wages, pension in new govt plan

The government has announced that workers in the informal sector will soon begin saving for their retirement and receive medical coverage through an expanded social protection programme. Speaking on Thursday during the launch of a social protection project funded by China in Nairobi, Labour and Social Protection Cabinet Secretary Alfred Mutua said the new plan, which is set for immediate implementation, is expected to benefit Kenya's 16 million informal-sector workers. This will be done by introducing regulated minimum wages and mandating...

October 25, 2024
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16Oct

Kenya. Pension payments fall by Sh23 billion as government faces cash crunch

Pension payments to retired public service workers fell short by Sh23.65 billion in the first quarter of the Financial Year 2024-2025, highlighting a growing public cash crisis amid declining tax revenues. The National Treasury's Pensions Department processed Sh32.14 billion in payments during this period, reflecting a modest increase of 4.23 per cent compared to Sh30.83 billion from the previous year. However, this amount was significantly below the prorated target of Sh55.60 billion, based on an annual goal of Sh223.15 billion due...

October 16, 2024
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August 2024
30Aug

Kenya launches plan to promote retirement benefits sector

Kenya on Thursday launched a strategic plan aimed at promoting an inclusive and sustainable retirement benefits sector. Chris Kiptoo, principal secretary in the National Treasury and Economic Planning, told journalists in Nairobi, the capital of Kenya, that the five-year Retirement Benefits Authority Strategic Plan aims to grow the country's retirement savings from 1.7 trillion shillings (about 13.2 billion U.S. dollars) to 24.8 billion dollars by 2029. "The blueprint also details steps to expand pension coverage from the current 26 percent of...

August 30, 2024
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19Aug

Low financial literacy leaves Kenya’s pension coverage at 26%

By MARTIN MWITA   Low financial literacy and awareness among the Kenyan population is to blame for the low pension coverage in the country which remains at a low of 26 per cent, industry players now say. A huge number of Kenyans also work in the informal sector, where pension schemes are either unavailable or underutilised. Without targeted interventions, these individuals remain vulnerable, lacking the financial safety net that pensions provide, the Association of Pension Trustees and Administrators of Kenya (APTAK) has noted. The association...

August 19, 2024
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