Mbao Pension savings double in six months

 

By John Gachiri

Posted  Wednesday, February 13  2013 at  18:54

Retirement savings for informal sector workers held by the Retirement Benefits Authority have doubled over the past six months to Sh40.5 million, data released Wednesday showed.

The Co-op Trust Investment Services, the fund managers of Mbao Pension plan, a savings plan for informal sector workers, said that the growth was driven by a rise in contributions, contributors and partly from investing in debt instruments.

“Even though the fund grew largely from members contributions the scheme earned interest from funds invested in government paper, corporate papers and term deposits. The fund recorded an overall interest performance of 23.6 per cent,” said a statement.

Over the last six months, the number of contributors grew to 39,900 from 32,800.

Overall, the fund has grown from Sh3.5 million with 13,200 contributors it began with in January 2012 when it was launched.