Browsing: Retirement Benefits Authority

• AFC and CPF Financial Services will collaborate in identifying, developing, and co-financing infrastructure projects aligned with Kenya’s growth plan. 
• Globally, infrastructure development is recognized as a critical pathway to any country’s economic take-off. 
• Kenya boasts one of the best infrastructure networks in the South of Sahara.  

Kenya’s infrastructure is set for a huge boost following a partnership between the Africa Finance Corporation and CPF Financial Services. The agreement signed during the opening of the ongoing Africa Climate Summit is aimed at increasing infrastructure investments in the East African nation. 

Under the new partnership AFC and CPF Financial Services will collaborate in identifying, developing, and co-financing priority infrastructure projects that are aligned with Kenya’s development roadmap. The two organisations will leverage their combined technical expertise and access to domestic and global capital.

“African institutional investors are one of the single largest sources of investable capital and will play a catalytic role …

 Economic prospects are predicting that 2021 will be a happier year for Pension Schemes. The devasting impact of Covid-19 had far reaching implications on the pension sector, especially in 2020 caused by several factors.

Also Read: Covid Economics: Kenya’s navigation of debt relief

• We had massive payouts, especially in the hospitality sector as companies closed down and retrenched. Pension scheme members made early access to pension benefits to cushion their financial well-being.
• A number of employers could not afford contributions funding to pension scheme and So they adapted to this challenge by obtaining a reprieve from the Retirement Benefits Authority to have temporal suspension of contributions deduction and remittance.
• The stock market also had a significant dip in valuations occasioned decline in earnings from a number of counters especially banking sector.
• In 2020 the GDP growth dropped to 1% growth compared to the projected growth of about 5%.

Despite the …

The Retirement Benefits Authority has announced an 8 percent year-on-year increase in the total assets under management by fund managers and approved issuers in Kenya.

According to the recently released RBA Retirement Benefits Industry report for December 2018, 16 fund managers and 15 approved issuers, submitted 1,236 scheme reports with a total fund value of Ksh. 980 billion representing an 8 percent increase compared to the December 2017 values.

The report further confirms that the total assets managed by fund managers amounted to Ksh. 813 billion while the approved issuers managed Ksh. 167 billion at the end of December 2018.

In terms of investments by fund managers and approved issuers, Sanlam Investments East Africa Company Limited (SIEAL) maintained its industry lead as the fund manager with the largest pension scheme assets under management, totaling Ksh. 202 billion which constitutes 20.6 percent of Kenyan pension sector assets.

The RBA report states …