This archive report was first published on 17 July 2020.
On July 17, 2020, the Kenyan economy was severely impacted by the COVID-19 pandemic, leading to widespread layoffs and economic stagnation. This has had a significant effect on pension schemes in the country, with reduced savings from members.
According to Octagon Africa CEO Fred Waswa, the pandemic has disrupted normal operations and led to a decline in pension contributions. The rising cost of living and declining revenues have further exacerbated the issue, making it challenging for fund managers to invest effectively.
Mr. Waswa noted that SMEs, a major component of umbrella schemes, have been particularly affected, with many downsizing and sending staff on unpaid leave to survive the pandemic.
As a result, some members of pension schemes have had to withdraw their savings due to the tough economic environment.
Related articles include 'Private Equity, Venture Capital Firms to come under CMA Oversight', 'Pensions and Retirement Benefits under Siege in Proposed New Laws', and 'Kenyan Legislators Reject Pension Tax, Scrap Excise Duty on Betting'.
