This archive report was first published on 26 June 2021.
On June 26, 2021, Zamara CEO Sundeep Raichura emphasized the need for bolder policy measures to revitalize Kenya's pension sector during the official opening of a two-day Pension Conference.
Speaking at the conference, Raichura urged the government to make pension contributions compulsory and significantly increase tax breaks for the sector. He noted that the current tax-deductible pension contribution limit of Sh20,000 per month has remained unchanged for 18 years, hindering long-term savings in the country.
According to Raichura, extending pension coverage to the informal sector is also crucial, given that 85% of the workforce is employed in this sector. He called for innovative solutions to address this issue.
Revenue Benefits Authority Chief Executive Officer Nzomo Mutuku highlighted the sector's resilience during the COVID-19 pandemic, with the industry registering growth and surpassing the Sh1.4 trillion mark. Mutuku encouraged pension fund trustees and providers to develop new products that would enable Kenyans to benefit from favorable regulations implemented by RBA.
He commended pension trustees who have included post-retirement medical savings in their schemes, acknowledging the plight of retirees without medical cover. Mutuku also emphasized the importance of effective communication in pension planning, stating, "Pension fund members need communication beyond their benefit statements if they are to better plan their retirement."
