The Retirement Benefits Authority (RBA) has warned pension schemes failing to remit member contributions or submit required returns that non-compliance could lead to license revocation, according to a 2019 report.
RBA CEO Nzomo 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 threaten members' savings.
"This creates a conflict of interest that can jeopardise the safety of members’ savings," Mutuku said.
Speaking at a conference in Kwale in 2019, Mutuku emphasized the regulator’s commitment to oversight, noting penalties for non-compliance include sanctions under the Retirement Benefits Act, such as trustee removal and five-year license revocations.
The authority urged pension industry participants to leverage the event for networking and policy input, stating such engagement informs regulatory reforms. It also called on schemes to submit proposals to the Treasury for retirement policy development.
As of 2019, pension coverage in Kenya stood at 20%, with retirement schemes holding assets exceeding Sh1 trillion—14% of the country’s GDP, according to the RBA.
