April 2022
08Apr

Kenya. RBA forms new entity to handle post retirement medical schemes

The Retirement Benefits Authority (RBA) has formed a stand-alone body to handle post-retirement medical funds. Dubbed Post-Retirement Medical Funds (PRMFs) Regulations, the entity will register and regulate retirement medical schemes without the need to be entrenched in pension funds. This regulatory move is aimed at enabling more people to access quality healthcare services after retirement. Previously, such funds were operated by pension schemes as a special fund since their introduction in 2018. This means that members whose pension schemes did not wish to explore the...

April 8, 2022
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March 2022
10Mar

Saving for Retirement by Kenya’s Informal Sector

Insurance companies in Kenya need to offer financial management education which is a key contributor to ensuring that the informal sector workers save and invest in pension schemes. Kenya’s vision 2030 targets the provision of high quality of life for all citizens. There are both public and privately run retirement schemes in the country but most citizens are subscribed to NSSF especially those in the formal sector. In Kenya, the current retirement age stands at 60 years but unfortunately, most people...

March 10, 2022
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01Mar

Kenya. Pension sector outlook positive despite election uncertainties

Kenya’s real Gross Domestic Product (GDP) growth has a history of slackening during election years. During this period, fund managers and individuals put investment decisions on hold pending a return to normalcy in the political scene. The extremity of the December 2007 elections, which sunk growth to 0.23 per cent in 2008 from 6.85 per cent a year earlier, stretched the speculation on political risk for subsequent years. In 2013, GDP decelerated to 3.80 per cent from 4.57 per cent while...

March 1, 2022
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February 2022
24Feb

Kenya. Gov’t Urged To Make Retirement Scheme Mandatory

The Association of Pension Trustee and Administrators of Kenya (APTAK) wants the government to make pension schemes mandatory for all Kenyans to encourage the culture of saving. Speaking during the 1st annual International APTAK conference on Wednesday, President of the Association Hosea Kili said that many Kenyans face poverty upon retirement as they fall short of adequate savings. Kili said the social security fund should be made a mandatory requirement by urging Kenyans to save just as the government did with...

February 24, 2022
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18Feb

Kenya’s pension industry eyes partnership with Chinese firms to spur investment returns

Kenya's pension industry said Thursday it plans to partner with Chinese firms in order to boost returns on investments. Sundeep Raichura, chairman of Kenya Pension Fund Investment Consortium (KEPFIC), told Xinhua in Nairobi, the Kenyan capital, that they are keen to collaborate with foreign firms that have the expertise to undertake viable infrastructure projects such as roads, rail and energy plants. Read also Ghana. GH¢10bn private pensions funds available for investment in GSE securities – Deputy MD "As the Kenyan pension industry,...

February 18, 2022
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10Feb

Kenya. Pension-backed mortgages boost to affordable housing

For more than a decade, Kenyans have had the leeway to use up to 60 percent of their accrued retirement benefits as a guarantee for mortgage loans. However, a study by the Retirement Benefits Authority (RBA) shows that less than 0.1 percent of members of retirement benefits schemes have taken advantage of the provision. In a bid to further catalyse individuals to utilise their pension savings towards homeownership, the Retirement Benefits (Mortgage Loans) - (Amendment) Regulations was enacted in 2020 allowing...

February 10, 2022
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08Feb

Kenya. Pension returns up five percentage points on stocks gains

Pension fund returns rose by five percentage points in 2021 on improved performance of equities and offshore investments, signalling higher interest earnings for savers. Pension fund administrator Zamara said that in 2021, the median return for schemes stood at 12.4 percent compared to 7.3 percent in 2020. The higher returns were mainly driven by a rebound in equities, where returns stood at 18.4 percent in the year compared to a decline of 10.4 percent in 2020. This asset class accounts for...

February 8, 2022
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January 2022
28Jan

Kenya. Zamara launches retirement insurance plan for boda boda riders

Zamara Group, a financial services provider, has entered into a partnership with the United Boda Boda Association of Kenya. The partnership agreement aims to bring financial security to close to 2 million Kenyans within the Boda Boda sector through its Fahari Retirement Plan. The partnership will kick off with rollout of pilot programs on retirement saving, pensions and insurance acceptance within the sector, training and mass rollout to facilitate adoption. Fahari ya Boda Boda is tailored to the specific needs...

January 28, 2022
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November 2021
29Nov

Here Are The Regulatory Changes In The Kenyan Pensions Industry

As of the end of 2020, the pension industry ranked second as the most preferred mode of saving with assets worth 1.4 trillion shillings after bank deposits at 4.0 trillion shillings. The graph below highlights the sizes of different saving channels and capital market products in Kenya as of December 2020: Despite the historical growth, there is still room for improvement given that the Kenyan Pension Schemes’ AUM was equivalent to 13.3 percent of the country’s GDP in 2020. Compared to other...

November 29, 2021
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22Nov

Kenya. Safaricom lifts pension earnings to four-year high

Pensioners have enjoyed the highest returns from investments in four years helped by the big gains on the shares of Safaricom and large banks, which make up the bulk of the pension industry equities investments. Pension funds surveyed by fund administrator Zamara and Actuarial Services East Africa (Actserv) show a return of 15.1 percent on investments for the one year to September 2021, the highest since they reported a 15.5 percent return in 2017. Read also Ghana. Parliament asked to address...

November 22, 2021
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