RBA to vet trustees of funds from next year

Retirement Benefits Authority Chief Executive Officer Mr Edward Odundo (left) with the authority's chairman Mr Justus Manyara M'Igweta  

By WINSLEY MASESE

All schemes managing retirement benefits will be required to have at least a certified trustee by December next year.

Retirement Benefits Authority (RBA) chairman Manyara M’Igweta said this is aimed at ensuring efficiency in the management of the funds.

The retirement benefits regulations 2000 require every scheme or corporate trust to have in their board of directors at least one member vetted by the authority.

“Training will ensure trustees understand good governance to manage the funds effectively,” he said.

Governance has been a thorny issue in some trustees, eroding the confidence of Kenyans to save.

“Trustees have a huge responsibility of ensuring members’ funds are prudently invested,” said the chairman, adding that trustees were liable for their actions.

Better management has seen the funds remarkably improved from Sh50 billion as at December 2000 to Sh451 billion by the end of last December.

Speaking during the launch of the programme at the College of Insurance in Nairobi on Monday, Mr M’Igweta said once trained, trustees would improve the schemes’ governance and ensure compliance with the regulator.

The curriculum for training was developed with the assistance of a World Bank consultant and Canada’s Humber Centre for Employee Benefits. The latter will provide pension education and issue certification.