× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS
×

Pension schemes: Pension industry eyes Sh1tr assets

BUSINESS
By Nicholas Waitathu | Jul 24th 2014 | 2 min read
By Nicholas Waitathu | July 24th 2014
BUSINESS

The Retirement Benefits Authority (RBA) targets to grow the pension industry coverage to 20 per cent in the next five years.

The pension industry regulator also intends to increase assets from the current Sh696.68 billion to reach Sh1.02 trillion by June 2019. RBA Chief Executive Officer Edward Odundo yesterday said the ambitious strategy will be fast-tracked to encourage high growth as well as bring on board more contributors.

“This will be possible through targeted awareness programs and products designed to reach out to segmented groups. The authority will also pursue automatic enrollment,” said Odundo. He said RBA will create a facilitative legal framework to encourage product diversification and improve returns on savings. It will also review the National Pension Policy with a view to encouraging growth.
In the Strategic Plan (2014-2019), Odundo said that the pension industry has been facing challenges key among them how to bring on board the Jua Kali artisans.
“A developed pension system will have secondary effects on mobilisation of long term savings. This will spur growth of pension assets,” he added.
Total industry assets grew by 99 per cent in the second half of 2013 to stand at Sh696.68 billion as at December 31, 2013. Odundo said the amount is made up of Sh564.82 billion held by fund managers and insurance issuers, Sh92.86 billion is internally administered by National Social Security Fund (NSSF) and an additional Sh39 billion of property investments directly managed by scheme trustees. The assets under fund management include Sh43.4 billion of NSSF funds that are externally managed by the six contracted managers.
To ensure the informal sector joins the pension industry, RBA launched the “Mbao” Pension scheme in 2011. Jua kali artisans contribute a minimum Sh20 every day. As at mid of March this year the scheme had accumulated more than Sh75.8 million and membership increased to more than 53,230 people.

Share this story
Fund seeks to recover Sh1.2 billion from collapsed bank’s directors
DPF is seeking orders to recover the cash from ex-directors and immediate family members
China rejected Kenya's request for Sh32.8b debt moratorium
China is Kenya’s largest bilateral lender with an outstanding debt of Sh692 billion.
.
RECOMMENDED NEWS
Feedback