Amendment of RBA Act will secure public trust

By Luke Anami

The National Social security Fund (NSSF) might be required to invest in Government securities and infrastructure bond should the proposal to put it under the Retirement Benefits Act (RBA) succeed.

Finance Minister Uhuru Kenyatta has ordered that new investments made by registered pension schemes that receive statutory contributions will have to comply with RBA regulations and rules.

The move is meant to regulate and streamline the pension’s sector and guarantee better income to scheme members after retirement.

"The RBA Act will be amended to require that new investments by pension schemes that receive statutory contributions be put in Government securities and infrastructure bonds used by public institutions only."

In order to address this problem and ensure public funds are safe, Uhuru has proposed to amend the RBA Act to accommodate this arrangement.

He said this would go along way to guarantee a steady rate of return, thereby increasing confidence for member’s returns.

"It will also seal the abuse by the aforesaid mentioned schemes to sink members’ funds into dubious investments," Uhuru said during this year’s Budget speech.