This archive report was first published on 1 September 2019.
Published on September 1, 2019, Zamara Fanaka Retirement Fund has upgraded its systems to ensure that early retirees do not access employer contributions until they reach retirement age.
This move is in line with the new Preservation Rules aimed at preventing workers from retiring to abject poverty. The previous practice allowed early retirees to access their entire pension savings, leaving them with nothing for their twilight years.
According to Lucy Kambuni, the Board of Trustees chairperson, this new measure is a good step towards reserving more money for use during sunset years. 'It is painful but in the best interest of our hard-working employees who need more money to lead decent lives upon retirement,' she said.
Ms Kambuni also informed that the fund has notified its 180 client-organisations, whose 37,000 employees have saved Sh28 billion, now under Zamara's management. The move is expected to benefit the employees who will now have more money to spend on their families' well-being.
Meanwhile, Zamara's investments witnessed a rebound in the half year, with returns standing at between nine and 10 percent compared to a paltry 1.3 percent return during a similar period last year. However, the mixed-use real estate project in Kitengela continued to experience low uptake due to lack of credit access.
