The Retirement Benefits Authority (RBA) has issued a stern warning to pension funds that failure to remit member contributions or file required returns may lead to license revocation, according to statements from Chief Executive Nzomo Mutuku.
Mutuku highlighted concerns about trustees and administrators interfering with fund managers' roles, particularly in property investments, which he described as creating conflicts of interest that could jeopardize members' savings. This warning was delivered during the sixth annual retirement conference in Kwale, where the regulator emphasized its commitment to oversight.
"The authority will apply sanctions under the Retirement Benefits Act, including removal of trustees and five-year license revocations for non-compliance," Mutuku stated. The RBA also urged pension schemes to submit proposals to the Treasury for policy input and encouraged industry networking during the two-day event.
As of 2019, Kenya's pension coverage stood at 20 percent, with retirement schemes holding assets exceeding Sh1 trillion—14 percent of the country's GDP. A related report from January 2019 noted similar warnings about delayed pension deductions by employers.
