NAIROBI, Kenya, November 30 – The newly-launched Mwanariadha Pension Initiative has been hailed as a game-changer and the silver bullet to the age-old problem of financial illiteracy and poverty-related challenges among Kenyan athletes.
The initiative, which comprises an endowment fund for veterans and a pension scheme, was launched with pomp and colour on Thursday morning at the Weston Hotel in Nairobi.
Speaker after speaker waxed lyrical about the scheme, basing its rationale on the teary stories of the yesteryears where athletes, who flew the national flag high, have nothing to show for all the glitz and glamour in their active careers.
Sports Cabinet Secretary Ababu Namwamba described the initiative as revolutionary and unprecedented.
“It is revolutionary and unprecedented…it could easily be a global first. It is quite a unique scheme and something the government has intended in our manifesto. We have been very clear that we need to find a fallback for our athletes because it is a career with a short shelf life,” Namwamba said.
The CS lamented that retirement is akin to a death sentence for many sportspersons who wallow in poverty after exiting the limelight.
“Wilson Kiprugut Chumo (first Kenyan to win an Olympics medal) is a big inspiration for what we are doing here today. When I went to bury him in November last year, I felt ashamed as a Kenyan because of the conditions that this Kenyan great had lived and died in,” Namwamba said.
Speaking at the same time, Athletics Kenya (AK) president Jack Tuwei described the initiative as a deserved gift to retired athletes who have branded Kenya as an athletics giant by virtue of their performances at the international level.
“We have come from a history of athletes living in difficult conditions. I think they deserve some improvement especially after bringing a good name to this country…it is important we look after them in retirement. That’s why we thought it is important to come up with this idea to help them in their retirement,” Tuwei said.
The 2008 Olympics champion for the men’s 800m, Wilfred Bungei, was candid in his assessment of the experiences of retired athletes.
“For me, I want to say it is a big dawn for us as athletes, both active and retired. Why do I say so? I want to say thank you because you have covered our nakedness. Many times we find ourselves in situations that we cannot resolve,” Bungei, one of the trustees of the endowment fund, said.
He added: “For the upcoming athletes, I want to tell you as a retired athlete, there are many people who could have made a lot of money but they did not invest. Those of you who are still running…register for this initiative so you can secure your future.”
Layman’s explanation
The all-round exaltation notwithstanding, many of the targeted beneficiaries may have been left scratching their heads on what they stand to gain from the initiative.
As aforementioned, the initiative consists of two major branches – the endowment fund and a voluntary pension scheme.
Tuwei explained that the endowment fund will cater to the needs of retired athletes who are mired in deplorable living conditions.
They will not be required to contribute to it.
“Veterans are retired athletes who are at home. They are not supposed to contribute anything because they have nothing to contribute anyway. Therefore, it is upon us to return the favour to them for what they have done in the past by contributing to this fund,” he said.
The president called upon interested parties, including corporate bodies as well as individuals, to contribute to the fund and help alleviate the living conditions of the country’s sporting heroes.
“We need to contribute to the endowment fund as all of us, including you. If you can contribute even 10 shillings, you are welcome to do so. This will enable us take care of those who have run for the country in the past so that they can live well along with their families,” Tuwei explained.
Regarding the pension scheme, it targets active athletes who will contribute a desired amount out of which they will reap benefits once they hang their spikes.
“Pension is something that comes every month…it is a salary but maybe at a lower level or scale. It is something that can help the family. It is a voluntary contribution and so I’d like to urge all active athletes to register so they can benefit,” Tuwei added.
No shilling lost
Joseph Rono, the group executive director for CPF Financial Services, says the initiative is built on a transparent and foolproof governance structure to ensure no shilling is lost.
“What we have done is to ensure the scheme is well managed in terms of putting in place a very good governance structure where we have different players conducting different roles. For example, you have us (CPF) as the administrators where we keep records for the athletes as they remit their contributions,” Rono explained.
He added: “We have a fund manager in place (CIC Asset Management) whose responsibility is to invest this money. We also have a custodian (Cooperative Bank) who ensures that the money is kept in safe custody. So, we believe the structure we have in place will secure the retirement of these athletes.”
Additionally, there will be no restrictions on the amount of money athletes are required to remit albeit – according to Rono – the more the contribution the more bountiful the harvest.
“They can contribute as much as they want but we want to encourage the athletes to remit sufficiently. What we will be doing from here now is to keep engaging them so that you know for sure if you save Ksh 500, what will be the amount after 20 years. If you secure a fortune like Ksh 1 million and contribute, as the administrators, we will be educating them on the projected return after 20 years,” Rono explained.
Through the Sports Fund, the government contributed Ksh 10 million towards the endowment fund and a similar amount towards the pension scheme.
Mwanariadha Pension Initiative: key points
- The Mwanariadha Pension Scheme consists of Endowment Fund for Veterans and Voluntary Pension Scheme
- The Endowment Fund will be sustained through contributions from the government, private sector and interested individuals
- Endowment Fund will be used to assist retired athletes in distress
- The Voluntary Pension Scheme is open to active athletes who are free to contribute any amount, either lumpsum or monthly
- CPF Financial Services will be the administrator , Cooperative Bank will be the custodians while CIC Asset Management will be the fund manager
- The Endowment Fund will be under the control of a Board of Trustees, headed by Philip Ngovi
