This archive report was first published on 13 May 2020.
Kenyan pension administrators are seeking an extension to review proposed retirement law changes that would allow members to access up to 40% of their savings to buy houses.
According to a letter to the pensions regulator, the Association of Retirement Benefits Authority (ARBS) believes the current week-long public participation period is too short to provide a substantive reply to the draft regulations.
ARBS Chairman Simon Nyakundi stated, "We wrote to the Retirement Benefits Authority (RBA) seeking an extension of the public participation time as we'll need to scrutinise the proposals and understand the impact of releasing up to 40 per cent of the Sh1.3 trillion kitty for house-buying."
Nyakundi argued that adding house purchases to the pension administrators' responsibilities would increase their scope of work beyond their competence and mandate.
He questioned who would foot the bill for conducting due diligence on properties and remunerate part-time workers.
Stakeholders have until May 13th, 2020, to submit proposals on how the Sh1.3 trillion retirement kitty will be sliced to fund purchase of homes for pension savers.
The Retirement Benefits Authority (RBA) has urged Kenyans to submit their recommendations in soft copy due to the Covid-19 pandemic.
President Kenyatta's assent to the RBA Act, Section 38 amendment, allowed pension savers to access a slice of their savings to buy houses, aligning with his development pillar of providing affordable housing.
