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 countries, the difference remains significant with the AUM for some of the developed countries exceeding the size of their domestic economy.
The graph below shows the AUM as a percentage of GDP for select Africa countries:
Over the past few years, the government together with the Retirement Benefits Authority has developed and amended pension schemes’ regulations aimed at strengthening the legal and regulatory framework in the pensions industry.1
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