Standard Group's pension scheme posts 10 pc growth

By John Oywa

The Standard Group Limited Staff Pension Scheme recorded an impressive 10.2 per cent growth last year after a sluggish performance two years ago.

The Chairman of the Scheme’s Board of Trustees, Lawrence Njiru said the scheme had fully recovered from the 2008 economic turmoil triggered by the post-election violence and was poised for even higher returns next year.

Njiru said the scheme’s total fund value had hit the Sh250 million mark.

The Chairman of Pension Scheme Board of Trustees, Lawrence Njiru, a trustee Susan Kasera (left) and secretary, Nelly Matheka (right), during the scheme’s AGM, yesterday. Photo: Moses Omusula/Standard

"Our scheme managers have done a good job. The results are impressive and I challenge them to deliver even better results next year," said Njiru who is also Standard Group’s Assistant Director in charge of finances.

He was speaking at the Standard Centre in Nairobi on Saturday during the scheme’s Annual General Meeting (AGM).

The scheme manages the pension fund for employees of the Standard Media Group through a board of trustees.

The scheme’s Secretary Nelly Matheka, who is also Standard Group’s Assistant Director, Legal, Human Resources and trustees John Kamonde and Susan Kasera accompanied Njiru.

Senior officials from Old Mutual, Barclays Bank, Liaison Financial Security Services Ltd and Deloitte&Touche gave presentations.

Old Mutual Asset Managers Ltd Portfolio Manager, Ms Susan Mbatia said the scheme was doing well, adding that the new Constitution could spur higher economic growth and create more investment opportunities.

"The inflation and bank interest rates have come down and this is good for the pension scheme. The global market is also recovering and this will be good for off-shore investments," she said.

New services

Mr Michael Gitau of the Liaison Financial Services said scheme members could now enjoy a new service — Additional Voluntary Contribution (AVC) — that allows them to inject additional investment to the scheme besides the normal deduction. This service, he explained, comes with better returns and taxation advantages.

Ms Eva Bore Mwangi of Barclays Security Services (Kenya) assured the trustees that the scheme’s assets were safe.

Njiru asked Standard Group employees to take keen interest in the management of the scheme. "We should not wait until we are 55 years old to start inquiring about the scheme," he said.

He added: "As the Fund’s sponsor, the Standard Group is committed to ensuring that the employees have a better retirement."