NAIROBI, Kenya, May 16 – Kenya’s pension industry assets are set to hit Sh1 trillion mark by end of 2016.
This is according to Retirements Benefits Authority Chief Executive Edward Odundo who says this will be possible if the industry maintains 10 percent annual growth.
Odundo says the industry assets currently stands at Sh900 billion up from Sh50 billion in 2000.
Approximately 30 percent of the pension market is invested in the stock exchange while 50 percent is invested in the government securities.
“This is a clear indication of the critical role that the pensions industry plays in the economic growth agenda of the nation,” Odundo says.
Eight percent is in the Insurance industry through the deposit administration funds.
According to RBA only 15 percent of the labour force in the country has a retirement plan.
“Kenyans consumer driven culture particularly among the youth continuous to undermine the high growth potential within the industry,” RBA says.
Odundo was speaking during the rebrand launch of Liberty Pension Services that has now rebranded to Enwealth Financial Services.
The re-brand comes five years after the company’s inception and at a time when the company is adopting a new strategy that will see it roll out more ICT driven innovations targeting the SME market with the underlying objective of enhancing pension coverage from 15 percent to 30 percent.