Government rolls out plans to make pension schemes attractive

National Social Security Fund chairman Adan Mohamed (left) chats with Finance minister Robinson Githae during the inaugural NSSF annual general meeting. Photo/DIANA NGILA  NATION MEDIA GROUP

BY PATRICK BEJA and PETER ATSIAYA

The Government is fast-tracking reforms in the pensions industry to raise returns for members and make retirement schemes more attractive.

Finance PS Joseph Kinyua said this year’s Finance Bill seeks to amend the Retirement Benefits Act to allow members of pension schemes to use their benefits as collateral for mortgages. Kinyua said as a source of long-term funds, the pensions industry was one of the anchors that could stabilise the economy.

The PS said this in a speech the Economic Secretary Geoffrey Mwau read on his behalf at the sixth Retirement Benefits Authority open day held at the Aga Khan Jubilee Hall in Mombasa at the weekend.

"The Government will therefore continue to put in place policy measures to further strengthen this important industry," Kinyua said.

Meanwhile, Nairobi Metropolitan Assistant Minister Elizabeth Ongoro wants the Constitution changed to enable civic leaders be entitled to pension. Ms Ongoro said she would push for the review of the law to allow councillors who serve for two consecutive terms benefit from a pension scheme when they retire, or are voted out. "Councillors deserve a pension scheme. I will push for change of law to make them eligible to such benefits," she said.

Addressing mourners during the burial of Kariobangi Ward councillor Japheth Bonyo at Wagusu village, Bondo District, at the weekend, Ongoro said civic leaders’ entitlement to pension would boost their performance.