This archive report was first published on 30 August 2021.
On August 30, 2021, the National Treasury awarded a lucrative Sh. 31 billion pension deal to Co-operative Bank, NCBA Group, and Stanbic Bank. The three banks will manage pension contributions for over 350,000 public servants, including police officers and teachers.
The new fund, CPF Financial Services Limited, will operate under the Public Service Superannuation Scheme. The banks were selected based on their charges, stability, and interest rates on the monies they will be holding.
Under the new deal, civil servants will contribute 7.5 per cent of their basic salary to the Public Service Superannuation Scheme. The deductions will start at 2 per cent in the first year, five per cent in the second year, and 7.5 per cent in the third year. Employees will have the option to make additional contributions voluntarily above the mandatory 7.5 per cent, while the government will cater to 15 per cent.
