The Association of Kenya Insurers (AKI) has launched a guidebook on the retirement benefits sector in Kenya.
A first of its kind in the industry, the publication is a comprehensive resource for the retirement benefits sector.
It focuses on the legal framework, retirement planning products, taxation and governance of retirement benefits schemes.
The publication targets scheme administrators, trustees, members of schemes and anyone interested in planning for retirement.
Speaking during the launch event, the AKI Chairman Nixon Shigoli noted that retirement is inevitable, and careful planning is necessary for a comfortable retirement.
He highlighted the important role that insurance companies play in the retirement benefits space as Approved Issuers offering the Deposit Administration product.
“Deposit Administration accounts for 36 per cent of total written premiums in the life insurance business, with funds under deposit administration, personal pension, and annuity products amounting to Sh481.03 billion.
According to RBA data as of June 2024, guaranteed funds managed by life insurers constituted 22.29 per cent of the Sh1.9 trillion pension assets under management, with 677 of 1,036 registered schemes utilizing these funds.”
The Insurance Regulatory Authority (IRA) and Retirement Benefits Authority (RBA) supported the development of the publication.
Speaking during the event, IRA CEO and Commissioner of Insurance Godfrey Kiptum urged Kenyans to take advantage of the incentives the Government has provided such as tax exemptions on pension contribution to save for retirement.
He appreciated AKI for putting together this comprehensive publication on the pensions sector and urged them to develop more guidebooks for other specialisations in the insurance industry.
Lazarus Keizi, Ag. Director, Research, Strategy and Planning at Retirement Benefits Authority, spoke on behalf of the RBA CEO, noted the value of the content in the guidebook will add to the education of Trustees, Scheme Administrators and Members.
He encouraged all stakeholders to utilize the guidebook as a tool for enhancing governance, understanding compliance requirements, and adopting best practices.
“This launch is not just the introduction of a book; it marks the beginning of a new chapter for Kenya’s retirement benefits sector” he added.
The publication was developed by a team of seasoned pensions administrators from various insurance companies that serve as members of the Retirement Benefits Committee at AKI.
