February 2022
08Feb

Kenya. Pension returns up five percentage points on stocks gains

Pension fund returns rose by five percentage points in 2021 on improved performance of equities and offshore investments, signalling higher interest earnings for savers. Pension fund administrator Zamara said that in 2021, the median return for schemes stood at 12.4 percent compared to 7.3 percent in 2020. The higher returns were mainly driven by a rebound in equities, where returns stood at 18.4 percent in the year compared to a decline of 10.4 percent in 2020. This asset class accounts for...

February 8, 2022
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January 2022
28Jan

Kenya. Zamara launches retirement insurance plan for boda boda riders

Zamara Group, a financial services provider, has entered into a partnership with the United Boda Boda Association of Kenya. The partnership agreement aims to bring financial security to close to 2 million Kenyans within the Boda Boda sector through its Fahari Retirement Plan. The partnership will kick off with rollout of pilot programs on retirement saving, pensions and insurance acceptance within the sector, training and mass rollout to facilitate adoption. Fahari ya Boda Boda is tailored to the specific needs...

January 28, 2022
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November 2021
29Nov

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...

November 29, 2021
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22Nov

Kenya. Safaricom lifts pension earnings to four-year high

Pensioners have enjoyed the highest returns from investments in four years helped by the big gains on the shares of Safaricom and large banks, which make up the bulk of the pension industry equities investments. Pension funds surveyed by fund administrator Zamara and Actuarial Services East Africa (Actserv) show a return of 15.1 percent on investments for the one year to September 2021, the highest since they reported a 15.5 percent return in 2017. Read also Ghana. Parliament asked to address...

November 22, 2021
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08Nov

Kenya. Pension scheme providers urged to adopt new regulations

The government has asked pension scheme providers in the country to adhere to the new pension regulations. The new regulations came into force after the adoption of the Pensions Amendment Bill of 2020. The Bill allows subscribers of pensions schemes to access up to 40 per cent of their pension to own houses. Previously, upon discharge, employees were entitled to their own contributions, 50 per cent of their employer’s contributions, and any investment income that accrued after those contributions. Furthermore, the regulations...

November 8, 2021
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October 2021
19Oct

Kenya. Pension funds participation in market drops

Pension schemes cut investment in securities on Covid-19 disruptions, blunting local investor stake in the economy and making Kenya slip four positions in an index that ranks countries’ financial market attractiveness. The Absa Africa Financial Markets Index 2021 shows that reduced pension investment saw Kenya lost 17 points in the index that measures local investor capacity. The country scored 24 points out of 100, from 41 in 2020. The local investor capacity was based on the size of pension funds - key...

October 19, 2021
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June 2021
11Jun

Kenya. Pension payments fast-tracked as Treasury proposes stiffer measures

National Treasury CS Ukur Yatani revealed that a national retirement policy that will harmonise pension-related laws and enhance accountability is in the pipeline and will be ready by the end of this year. While unveiling Kenya’s 2021/2022 Ksh3.03 trillion budget in Parliament, Yatani said the policy seeks to achieve comprehensive pension coverage across the formal and informal sector so as to protect the interests of beneficiaries and rights of pension contributors. “Mr. Speaker, given the disparities in the design of the...

June 11, 2021
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02Jun

Kenya’s civil service is ageing, but adjustments aren’t being made

The demographic profiles of countries like Kenya, where a high percentage of people are young, would suggest that it’s swiftly renewing its workforce with fresh talent. But this doesn’t seem to be the case. We conducted a study in a public sector organisation three years ago. We found that the bureau had an ageing workforce. More than half of its staff were 50 years old and above. The majority of employees were aged between 51 and 60. This suggests that, in...

June 2, 2021
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May 2021
12May

Kenya. Civil servants mass departure pushes pension to Sh150bn

Mass retirement of civil servants has pushed pension payouts to more than Sh150 billion, underlining the burden of a fast-aging public service to taxpayers on the back of delays in implementing reforms in the past. The Treasury has projected the pension department will require Sh153.64 billion in the financial year starting July 2021 to honour monthly pensions claims and gratuity pay by senior citizens. Read also South Africa: Green light for infrastructure investment by retirement funds? This is a 38.24 percent jump...

May 12, 2021
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March 2021
18Mar

Kenya: Former Telkom Workers Wallow in Poverty As Pension Scheme Holds On to Payout

On a bright Wednesday morning, Agnes Ouma sits on a blue plastic chair outside her neighbour's house, in Jamhuri estate on Ngong road. She is going through her phone book. Midway, she pauses and laments: "Nobody receives my calls these days." She thinks that most of her contacts have blacklisted her. Because whenever she calls, it is to ask for financial help. Since retrenchment, she says, she has been reduced to a borrower -- borrowing without any clear plan to repay. "No...

March 18, 2021
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