Alexander Forbes taps into Kenyan diaspora billions

NAIROBI: Financial and risk services firm, Alexander Forbes has signed a memorandum of understanding with the Kenya Diaspora Alliance (KDA) to roll out a pension and savings product.

There are more than two million Kenyans living abroad who send home about Sh130 billion annually that Alexander Forbes is eyeing.

Alexander Forbes Chief Executive Officer Sundeep Raichura said the partnership will see KDA join the firm in promoting and marketing the Kenya Diaspora Pension and Savings Plan, a first for Kenyans living overseas.

The new product will operate as a trust and be regulated by the Retirement Benefits Authority. The Plan will offer Kenyans living outside the country individual retirement and other savings plans as well as cash backed loans with a local commercial bank.

“We will be the sponsor and administrator of this plan while KCB will act as the corporate trustee and custodian of the funds,” Mr Raichura said.

Under the agreement, Kenya Diaspora Alliance will receive a trail for money paid into the pension and savings fund. The new scheme will also have two registered local investment managers and one Africa investment manager.