LIVE: Retirement Benefits Sector Convention, KICC Nairobi II 29th August 2024 II www.kbc.co.ke

KBC Channel 1


Summary

The video discusses the growth and achievements in Kenya's retirement benefits sector over 24 years, with pension assets increasing to 1.9 trillion Kenyan Shillings by 2024. The sector has seen a significant rise in pension coverage from 10% to 26% of the labor force, signaling a positive trend in retirement saving. Efforts have been made to address challenges through legal and regulatory frameworks, introducing post-retirement medical funds, and initiatives like the Kenya National Entrepreneurs Trust for informal sector workers. The focus is on inclusivity, sustainability, and ensuring a dignified retirement for all, with the strategic plan aiming to increase pension coverage to 34% in the next 5 years.


Introduction and Background

Discussion on the establishment of the authority, challenges faced in the retirement benefit sector, and the growth and achievements over 24 years.

Investment Arena Resilience

Despite investment volatility, pension funds investments have remained resilient with assets growing to 1.9 trillion Kenyan Shillings by 2024.

Growth of Pension Assets

Pension assets under management grew from 40 billion to 1.9 trillion Kenyan Shillings, marking a 12% growth rate over the years.

Increase in Pension Coverage

Pension coverage increased from 10% to 26% of the labor force, showing significant growth in the number of people saving for retirement.

Enhancements in Service Provision

The number of service providers and pension fund administrators has increased, bringing in more professionalism to serve members saving for retirement.

Legal Framework Improvements

Significant strides have been made in legal and regulatory frameworks to address challenges in retirement benefit schemes, promoting transparency, and positive retirement outcomes.

Addressing Preservation of Benefits

Tightened laws ensure members can access benefits post-retirement age, with efforts to reduce early access to funds during active working life.

Enhancing Post-Retirement Medical Funds

Establishment of post-retirement medical funds to alleviate the burden of healthcare costs in retirement, restricting access to funds before retirement.

National Micro Pension Scheme

Introduction of the Kenya National Entrepreneurs Trust-KIST for informal sector workers to save for retirement, aiming to offer financial security and inclusivity.

Strategic Plan and Policy Launch

Launch of the National Determent Benefits Policy and RBA Strategic Plan 2024, focusing on transformative ideas for the future of the retirement benefits sector.

Introduction to Retirement Benefits

Discussion on the desired outcomes of inclusive and sustainable retirement benefits, including increased pension coverage and improved income replacement ratio.

Overview of Strategies

Overview of strategies related to pension benefits, policy, key result areas, strategic objectives, and enablers for executing the Strategic Plan.

Key Enablers for Strategic Plan Execution

Key enablers discussed including infrastructure, financial services, human resources, governance, research, innovation, creativity, and monitoring and evaluation for successful implementation of the Strategic Plan.

Acknowledgment and Introduction of Chief Guest

Acknowledgment of the chief guest, Dr. Chris kto PS Treasury, and the commencement of the address at the event.

Government's Commitment to Retirement Benefits

Discussion on the government's commitment towards ensuring dignified retirement with financial security and the launch of critical documents including the National Retirement Benefits Policy and the Retirement Benefits Authority plan.

Initiatives for Enhancing Social Security

Details on initiatives from 1997 towards enhancing social security, addressing retirement savings challenges, and aligning with the constitution's articles for strengthening social security and well-being.

Challenges Addressed in Policy

Identification and discussion of challenges in the retirement benefit sector, including fragmented legal frameworks, exclusion of informal sector workers, inadequacy of coverage, and lack of innovative products.

Policy Objectives and Innovations

Explanation of the policy's objectives focusing on harmonization, governance, growth of the retirement benefit sector inclusive of the informal sector, portability of benefits, medical insurance, innovation, and consumer protection.

Role of Retirement Benefits Authority

Emphasizing the Retirement Benefits Authority's central role in implementing the national retirement benefits policy, ensuring good governance, sustainability, and transparency in managing retirement benefits.

Strategic Plan Implementation

Importance of the strategic plan covering 2024 to 2029, aligning with Vision 2030, mobilizing long-term capital for national development, and increasing pension coverage to 34% in the next 5 years.

Innovative Strategies for Retirement Benefits

Innovative strategies outlined in the policy and strategic plan to address gaps in pension coverage, ensure retirement benefits accessibility, sustainability, and inclusivity for all workers.


FAQ

Q: What is the growth rate of pension assets under management over the years?

A: The pension assets under management grew at a rate of 12% over the years, from 40 billion to 1.9 trillion Kenyan Shillings.

Q: How much did pension coverage increase from 10% to?

A: Pension coverage increased from 10% to 26% of the labor force.

Q: What are some of the challenges identified in the retirement benefit sector?

A: Challenges in the retirement benefit sector include fragmented legal frameworks, exclusion of informal sector workers, inadequacy of coverage, and lack of innovative products.

Q: What are some of the objectives of the retirement benefits policy?

A: The objectives of the retirement benefits policy focus on harmonization, governance, growth of the retirement benefit sector inclusive of the informal sector, portability of benefits, medical insurance, innovation, and consumer protection.

Q: What is the importance of the strategic plan covering 2024 to 2029?

A: The strategic plan is crucial for aligning with Vision 2030, mobilizing long-term capital for national development, and increasing pension coverage to 34% in the next 5 years.

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