Statistics indicate more Kenyans now willing to save
According to industry figures, there has been enormous appetite for a pension which has seen the industry total pension funds under guaranteed arrangement grow from Ksh. 163 billion to 183.7 billion a growth rate of 12.7% despite the heavy withdrawals during the same period which was as a result of mergers & acquisition and closure of big stores like Nakumatt in 2018.
It is projected that pension under this class will grow to 300 billion shillings by 2020 with the supporting regulation which now requires the entire employer portion to be differed till retirement age or early retirement at 50 years.
This growth is attributed to public knowledge about the pensions sector as more Kenyan’s become increasingly enlightened on the need and benefits to save for the future as they seek for financial security at retirement.
The pension’s sector growth is reflected in particular in what is clearly market leadership by Kenindia Assurance where the company has posted the best returns on investment which is a catalyst in growing pension funds. The insurer has seen its current corporate client base rise from 265 in December 2018 to the current 302.
The personal pension plan arrangement has also experienced extensive growth in numbers having attracted 3,500 individuals so far up from 2,400 individuals within the same period.
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