Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Retirement Benefits Authority Chief Executive Officer Edward Odundo says the law makes it difficult for employees to opt for other private pension schemes for their staff/FILE

Government

New NSSF Bill threat to private pension schemes

Retirement Benefits Authority Chief Executive Officer Edward Odundo says the law makes it difficult for employees to opt for other private pension schemes for their staff/FILE

Retirement Benefits Authority Chief Executive Officer Edward Odundo says the law makes it difficult for employees to opt for other private pension schemes for their staff/FILE

NAIROBI, Kenya, Sep 4 – The Retirement Benefits Authority has asked the government to revise the National Social Security Fund Bill pointing out that it will kill the private pension industry if not addressed.

Retirement Benefits Authority Chief Executive Officer Edward Odundo says the law makes it difficult for employees to opt for other private pension schemes for their staff.

Odundo said that though the Bill has room for employers with sound benefit schemes to opt out of the mandatory NSSF contributions, the conditions for opting out have not been well defined under the proposed law.

“What is going to happen to private pension schemes that are there today, are we going to scrap them?” he asked.

Odundo says the structure of NSSF should also be addressed in order make it more efficient.

“The governance in terms of the trustees and in terms of investments (needs to be addressed) because even the current bill doesn’t give how those funds will be invested. We have had many scandals with the fund, and if we don’t address governance we won’t go anywhere,” he said.

He said that they will present the plea to Parliament and to the Attorney General for consideration.

The Bill which seeks to upgrade NSSF from a fund to a pension scheme proposes that all workers pay at least 12 percent of their gross salaries which will be equally split between the worker and the employer.

The Bill is set to be presented to Parliament by majority leader Aden Duale when the National Assembly resumes normal sittings on September 17.

Odundo was speaking at a regional workshop on supervision on Wednesday where plans are set to harmonize pension’s regulations across the East African region to allow portability of pensions in the region.

Advertisement. Scroll to continue reading.

He said the pension industry is growing at a high rate.

“The pension is growing very fast. We are at Sh600 billion… we are going at a level of 10 percent per annum,” he said.

He estimated that the country will hit a trillion marks in the next three years. He attributed this growth to the awareness of pension schemes.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...