Drive to have all employers enrol with pension schemes

DIANA NGILA | NATION Alexander Forbes Retirement Fund board of trustees chairman Richard Kemoli (left) with the chief executive officer in East Africa, Mr James Olubayi, at a press briefing on May 11, 2012 at Intercontinental Hotel, Nairobi, before the firm’s annual general meeting. 

By MWANIKI WAHOME jwahome@ke.nationmedia.com
Posted  Friday, May 11  2012 at  19:51

In Summary

• Increase the incentives to firms and individuals as country faces challenge of an ageing population, says financial services company0

Financial services provider Alexander Forbes wants the government to make it mandatory for employers to register their workers in pension schemes.

Speaking during the company’s annual general meeting, managing director Sundeep Raichura also said the government should consider increasing incentives for pension schemes and individuals to build the numbers.

“We have suggested a basic universal pension to alleviate old-age poverty. We are asking the government to make it mandatory for employers with more than five workers to register with pension schemes,” he said.

He said Kenya was faced with the challenge of an ageing population, and it was important for the government to encourage more people to join pension schemes, particularly in the informal sector.

Out of an estimated 60,000 employers in the country, he said, only 1,400 had registered their workers with pension schemes.

He said pension coverage remained low in the country, with only two million out of 12 million in formal and informal employment registered, out of the national total population of 40 million.

Mr Raichura said the current incentives to pension schemes were not enough to increase the numbers, adding that the Sh20,000 deductible amount should be increased significantly as it had not been reviewed over a period of five years.

He said that in countries like Ireland, the government matched contributions by individuals to boost the number of those registered.

And in Uganda and Tanzania it is mandatory for employers to register their workers with pension schemes.

He added that with East Africa’s harmonisation of systems, Kenya should follow suit and make contribution to pension schemes mandatory.

“If left to benevolence, employers will not register workers with pension schemes. Where this has thrived it is backed by legislation. Time has come for the government to make it mandatory for employers to register their workers with pension schemes,” said a trustee member, Mr Antony Kilavi.

The Alexander Forbes Retirement Fund, established six years ago, was the first multi-employer umbrella retirement fund in East Africa.

It has grown from a membership of two employers to 85 currently, covering 19,000 workers.

If the proposal to make the pension contribution by employers mandatory is accepted by government, the fund will be among those that stand to benefit from increased membership

Gallery given a week to pay Sh1.6m debt

By NATION REPORTER

An auction of art pieces has failed to take off after a gallery was given one week to settle a Sh1.6 million debt.

Art pieces at Gallery Watatu in Nairobi were scheduled to be auctioned to recover rent arrears owed to N.W. Realite Ltd, the agents contracted to collect rent on behalf of the Kenya Commercial Bank Pension Scheme. (READ: Gallery art to be auctioned over rent debt)

Mr Joseph Mungai Gikonyo, an auctioneer with Garam Investment, told the Nation that Gallery Watatu operators had agreed to clear the debt before June 14.

Artists, who claimed their artworks were in the gallery, urged the Heritage ministry to intervene.

“We are concerned that the art pieces have been arbitrarily bundled into batches and prices set at very low and unrealistic rates,” read a statement signed by the 10 artists.

The gallery operators estimated the value of the property attached at Sh200 million. Among the art pieces listed for auction were wall paintings, wooden shelves, stone carvings and glass frames.

“It is sad that few people attend exhibitions to buy our works yet when they are sold at ridiculously low prices, especially at auctions, everyone wants a share of our work,” Mr Sane Wadu said.

Gallery Watatu was established in 1968 by three friends.

Another season of scandal as Kenya elections near

Photo|FILE Clinix Healthcare Ltd Chief Executive officer Toddy Madahana (left) and chairman Jayesh Saini before the Parliamentary Committee investigating the NHIF scandal on May 15, 2012. 

By MUGUMO MUNENE mmunene@ke.nationmedia.com

inShare

Anti-corruption campaigners have expressed fears that theft of public money may escalate as the country gears up for elections.

The raging corruption scandals in parastatals such as the National Social Security Fund (NSSF) and National Hospital Insurance Fund (NHIF) have rekindled fears that politicians in power may start looting public coffers ahead of the General Election.

Researchers say politicians spent over Sh4.8 billion in the 2007 campaigns, a quarter of which is believed to have come from government coffers.

The Centre for Democracy and Governance estimates that over Sh1 billion was raised through pyramid schemes. CDG researchers say they found evidence that some of the money found its way to campaign kitties.

“For those incumbent in public office, additional income came from unpaid use of the provincial administration machinery, coercion to extort money from private businesses, use of state media and state corporation advertisements to propagate partisan information, use of government premises for party meetings, involving senior public officers in presidential campaign planning, use of government resources to produce material for campaigns and fuelling private vehicles using funds from government.

“These latter activities are estimated to have amounted to Sh500 million,” the researchers said of the 2007 elections.

According to an expenditure monitoring and income tracking survey conducted by the NGO, about Sh1 billion may have been spent in the use of state resources such as state media, vehicles and the Government Printer.

To unduly pressure

Former Cabinent minister Mukhisa Kituyi says he sees ominous signs of theft of public money. Dr Kituyi says he was once approached by a certain individual when he was in Cabinet in 2007 and asked to unduly pressure French cement maker Lafarge out of East African Portland Cement. (READ: State must come clean on its pressure on Lafarge)

Lafarge holds a large stake in Portland, a state corporation, and the threat was supposed to “make them talk” – couched language for issuing a bribe in order to be left alone.

Dr Kituyi is now warning that the same forces are on the loose with the same intentions and, again, in an election year.

“I feel a sense of déjà vu. The latest posturing comes at a time when questionable deals at NHIF, bulk petroleum importation, the possible sale of New KCC are raising the spectre of raiding public coffers for campaign funds,” Dr Kituyi says. “All prefects and whistle blowers should now get on heightened alert.”

Anti-corruption crusader Mwalimu Mati says there is a connection between scandals and an election year. “There is no doubt. All those incidents are related because of politics based on vote buying.

“The incumbent want to buy their way back into power. During election years, we have discovered that accounts of government go into shambles. There’s definitely a connection,” Mr Mati said.

“If Kenyans were to vote with their heads and not their stomachs, it would be different. If you sell your vote, you sell your government. If we had the moral fibre, it would be different.

“The major spending has got to be recouped somehow. Political party financing may make a difference. It’s not an all-hope-gone situation but we are trying to change a political culture that has gained root over the last 50 years,” Mr Mati told the Sunday Nation.

Parliament is trying to find out what happened at NHIF as the public health insurer rolled out a multi-billion-shilling scheme covering civil servants but which is embroiled in controversy.

The claims of fraud at NHIF came hot on the heels of a scandal at the NSSF where the state pension fund is paying for Kanu-era contracts.

House approves Sh3bn pension for retired teachers Share Bookmark Print Rating Education assistant minister Calist Mwatela. Parliament approved a resolution calling on the government to release Sh3.34 billion in pension and gratuity arrears for retired teachers June 6, 2012 Education assistant minister Calist Mwatela. Parliament approved a resolution calling on the government to release Sh3.34 billion in pension and gratuity arrears for retired teachers June 6, 2012 By ALPHONCE SHIUNDU ashiundu@ke.nationmedia.com Posted Wednesday, June 6 2012 at 14:51 SHARE THIS STORY 0 inShare Thousands of retired teachers got a reprieve Wednesday after Parliament approved a resolution calling on the government to release Sh3.34 billion in pension and gratuity arrears. The House resolution will see 31,082 retirees paid their dues after spending the early years of their retirement in penury. The Ministry of Education, through its assistant minister Calist Mwatela, told MPs that the money had already been set aside and there was no reason why the Controller of Budget was putting roadblocks on what was essentially a court award. “Anybody pretending to be withholding pension money should have gone to court, because it is illegal not to pay pension. I fully agree with this House that the teachers should be paid now,” said Mr Mwatela. The teachers had already been paid their pensions based on the last salary they earned before retirement. They subsequently went to court to have their salary matter adjudicated because the 1997 salary agreement captured in the Legal Notice No.534 of 1997 had not been honoured by the Moi regime In 2003, the Kibaki Administration negotiated another agreement with the teachers, which has been fully implemented. The court therefore entered judgment in the teachers’ favour. But there was a legal hitch when it came to paying the money this year. Under the new dispensation, any amounts of money must be authorised by the Controller of Budget. The Controller of Budget, Agnes Odhiambo, said she will not approve any withdrawal of the amount until she gets a legal opinion from the Attorney-General on how the court case hems in with the Pensions Act. Teachers suffering On Wednesday, Mr Mwatela added: “It is not right for a person to work for so long the way these teachers did and the end of it all, they have to run around looking for their pensions." John Pesa (Migori) said teachers were suffering yet the Treasury had already agreed on how the payments will be made. “The money is there; it was voted in this House and it is with the Treasury. We want it paid before the end of the financial year, so that we don’t have to return it. It is very good that the minister has assured us that the money will be paid,” said Mr Pesa. “Why for example would a chief principal who retired ten years ago get Sh12,000 in pension, whereas a P1 teacher who retired a few years ago, gets Sh15,000 in pension. We must look at these disparities,” the Migori MP added. Mr Pesa said the police and the military, plus other civil servants, also had problems accessing their pension. He said for the teachers the Treasury should pay Sh3.34 billion in the 2012-2013 financial year and said that the government should pay the lumpsum balance of Sh10.4 billion in the 2013-2014 financial year. “The teachers should know that the money will be paid directly to their bank accounts. Any lawyer who goes round trying to tell them to sign anywhere is a fraud,” said Mr Pesa.

 

Education assistant minister Calist Mwatela. Parliament approved a resolution calling on the government to release Sh3.34 billion in pension and gratuity arrears for retired teachers June 6, 2012  

By ALPHONCE SHIUNDU ashiundu@ke.nationmedia.com

Thousands of retired teachers got a reprieve Wednesday after Parliament approved a resolution calling on the government to release Sh3.34 billion in pension and gratuity arrears.

The House resolution will see 31,082 retirees paid their dues after spending the early years of their retirement in penury.

The Ministry of Education, through its assistant minister Calist Mwatela, told MPs that the money had already been set aside and there was no reason why the Controller of Budget was putting roadblocks on what was essentially a court award.

“Anybody pretending to be withholding pension money should have gone to court, because it is illegal not to pay pension. I fully agree with this House that the teachers should be paid now,” said Mr Mwatela.

The teachers had already been paid their pensions based on the last salary they earned before retirement. They subsequently went to court to have their salary matter adjudicated because the 1997 salary agreement captured in the Legal Notice No.534 of 1997 had not been honoured by the Moi regime

In 2003, the Kibaki Administration negotiated another agreement with the teachers, which has been fully implemented. The court therefore entered judgment in the teachers’ favour. But there was a legal hitch when it came to paying the money this year. Under the new dispensation, any amounts of money must be authorised by the Controller of Budget.

The Controller of Budget, Agnes Odhiambo, said she will not approve any withdrawal of the amount until she gets a legal opinion from the Attorney-General on how the court case hems in with the Pensions Act.

Teachers suffering

On Wednesday, Mr Mwatela added: “It is not right for a person to work for so long the way these teachers did and the end of it all, they have to run around looking for their pensions."

John Pesa (Migori) said teachers were suffering yet the Treasury had already agreed on how the payments will be made.

“The money is there; it was voted in this House and it is with the Treasury. We want it paid before the end of the financial year, so that we don’t have to return it. It is very good that the minister has assured us that the money will be paid,” said Mr Pesa.

“Why for example would a chief principal who retired ten years ago get Sh12,000 in pension, whereas a P1 teacher who retired a few years ago, gets Sh15,000 in pension. We must look at these disparities,” the Migori MP added.

Mr Pesa said the police and the military, plus other civil servants, also had problems accessing their pension. He said for the teachers the Treasury should pay Sh3.34 billion in the 2012-2013 financial year and said that the government should pay the lumpsum balance of Sh10.4 billion in the 2013-2014 financial year.

“The teachers should know that the money will be paid directly to their bank accounts. Any lawyer who goes round trying to tell them to sign anywhere is a fraud,” said Mr Pesa.

With technology in business comes regulatory headachesThe financial sector has undergone major changes over the past decade, presenting huge benefits as well as regulatory challenges due to operational complexities. Growing footprints in the region by financial institutions coupled with the adoption of robust ICT tools have had a major influence on financial services and shows every sign of becoming the main thing in future. The Finance minister in his budget speech said the government would shortly start establishing a consolidated financial sector regulatory framework bringing together the Capital Markets Authority, the Insurance Regulatory Authority, and the Retirement Benefits Authority. In addition, the Banking Supervision Department would be re-established as an entity under a reviewed CBK Act with a clear mechanism allowing for coordinated and effective financial sector supervision. This move was informed by the need to strengthen supervisory capacity, safeguard stability, and enhance efficiency of financial sector regulators which appears to have faltered. Locally, there have been tendencies towards diversification of available products beyond financial services and establishment of conglomerates. The driving force behind this trend is the convergence of different markets as a consequence of a common technological platform or infrastructure to offer products caused by technological development. In spite of the noted developments, there has been no concerted effort towards addressing the regulatory complexities that have evolved over the time. The existing regulatory framework for the financial sector consists of a number of independent regulators, each charged with supervision of a particular sub-sector. This structure has been characterised by regulatory gaps, overlaps, multiplicity of regulators, inconsistency, and differences in operational norms. Although the move taken by the minister is praiseworthy, it is critical to appreciate that there is no single optimal model for the organisational structure of financial regulation. Prevailing circumstances, historical factors, and comparative advantage in any given country determine the structure of the integration. Thus, even if countries have much to learn from each other, different countries should adopt different integration approaches suitable to their unique circumstances. There are obvious risks of having disjointed regulatory bodies. Where there are regulatory overlaps, as is the case in Kenya, then having multiple regulators can allow entities to engage in arbitrage where firms opt to register products in those sub-sectors where rules are weakest or most cost efficient. With a consolidated regulator, uniform standards can be applied to all sub-sectors, hence eliminating the motivation for arbitrage. The most compelling argument for consolidated regulation is to enhance the mirroring of the structure of regulation to the structure of the industry. If entities are conglomerates covering banking, insurance, securities and pension, then it is difficult for a regulator of a particular sub-sector to draw a view of the overall risks facing the entity. A single regulator, on the other hand, will be able to understand and monitor risks across the sub-sectors and develop policies to address the dangers facing the entire conglomerate.

The financial sector has undergone major changes over the past decade, presenting huge benefits as well as regulatory challenges due to operational complexities.

Growing footprints in the region by financial institutions coupled with the adoption of robust ICT tools have had a major influence on financial services and shows every sign of becoming the main thing in future.

The Finance minister in his budget speech said the government would shortly start establishing a consolidated financial sector regulatory framework bringing together the Capital Markets Authority, the Insurance Regulatory Authority, and the Retirement Benefits Authority.

In addition, the Banking Supervision Department would be re-established as an entity under a reviewed CBK Act with a clear mechanism allowing for coordinated and effective financial sector supervision.

This move was informed by the need to strengthen supervisory capacity, safeguard stability, and enhance efficiency of financial sector regulators which appears to have faltered.

Locally, there have been tendencies towards diversification of available products beyond financial services and establishment of conglomerates.

The driving force behind this trend is the convergence of different markets as a consequence of a common technological platform or infrastructure to offer products caused by technological development.

In spite of the noted developments, there has been no concerted effort towards addressing the regulatory complexities that have evolved over the time.

The existing regulatory framework for the financial sector consists of a number of independent regulators, each charged with supervision of a particular sub-sector.

This structure has been characterised by regulatory gaps, overlaps, multiplicity of regulators, inconsistency, and differences in operational norms.

Although the move taken by the minister is praiseworthy, it is critical to appreciate that there is no single optimal model for the organisational structure of financial regulation.

Prevailing circumstances, historical factors, and comparative advantage in any given country determine the structure of the integration.

Thus, even if countries have much to learn from each other, different countries should adopt different integration approaches suitable to their unique circumstances. There are obvious risks of having disjointed regulatory bodies.

Where there are regulatory overlaps, as is the case in Kenya, then having multiple regulators can allow entities to engage in arbitrage where firms opt to register products in those sub-sectors where rules are weakest or most cost efficient.

With a consolidated regulator, uniform standards can be applied to all sub-sectors, hence eliminating the motivation for arbitrage.

The most compelling argument for consolidated regulation is to enhance the mirroring of the structure of regulation to the structure of the industry.

If entities are conglomerates covering banking, insurance, securities and pension, then it is difficult for a regulator of a particular sub-sector to draw a view of the overall risks facing the entity.

A single regulator, on the other hand, will be able to understand and monitor risks across the sub-sectors and develop p

Under certain circumstances where institutions are not in themselves conglomerates, the products they offer may defy conventional categorisation.

For instance, some banks are practising bankassurance, which poses more risks compared to convectional banking.

Another popular argument for consolidated regulation arises from cost efficiency gains that can be obtained by consolidating multiple regulators into a single body.

Certainly, a consolidated regulator will only have one set of service departments such as administration, finance, and human resources, hence reducing staff and other overhead costs.

Blame game

Where there are overlaps in registration and licensing, then consolidation will also bring cost cuts and efficiency gains by allowing regulated entities to have a one-stop licensing procedure as opposed to multiple registrations.

These gains are maximised where regulation is consolidated by function as opposed to consolidation by institutions.

Consolidated regulation also curbs the blame game among regulators. Blame may be passed from one body to another when supervisory failure occurs.

A consolidated financial regulator would be responsible for supervising all entities and products and duly held accountable.

In spite of the noted benefits, challenges abound in the implementation of a consolidated regulation.

It poses many risks, including reduced effectiveness and loss of focus. In addition, the actual process of integration is likely to be disruptive and expensive, watering down the expected benefits.

The case for consolidation appears weaker in Kenya as market developments have not seen the rise of truly universal conglomerates yet.

The writer is a tax expert with Ernst & Young. Email: david.wanyoike@ke.ey.com Views expressed are not necessarily those of Ernst & Young.

olicies to address the dangers facing the entire conglomerate.

Michuki, Saitoti and Ojode families get Sh10m insurance Share Bookmark Print Rating From left: Jubilee Insurance Company chief executive Patrick Tumbo, House Speaker Kenneth Marende and Clerk Patrick Gichohi during the presentation of a Sh30 million dummy cheque at Parliament Buildings June 28, 2012. The money will go the families of the late John Michuki, George Saitoti and Orwa Ojode. SALATON NJAU From left: Jubilee Insurance Company chief executive Patrick Tumbo, House Speaker Kenneth Marende and Clerk Patrick Gichohi during the presentation of a Sh30 million dummy cheque at Parliament Buildings June 28, 2012. The money will go the families of the late John Michuki, George Saitoti and Orwa Ojode. SALATON NJAU By LUCAS BARASA lbarassa@ke.nationmedia.com Posted Thursday, June 28 2012 at 13:21 SHARE THIS STORY 0 inShare The families of three MPs who died this year have received Sh10 million each by an insurance company. Jubilee Insurance Company gave the families of the late Environment minister John Michuki, the late Internal Security minister George Saitoti and the late Internal Security assistant minister Orwa Ojode the money Thursday. The families are also expected to get another Sh10 million each from Kenindia Insurance. National Assembly Speaker Kenneth Marende and Clerk Patrick Gichohi received a Sh30 million dummy cheque from the insurer at Parliament Buildings. The payments were transmitted to the accounts of the bereaved families electronically by their respective banks. The late Michuki ,who was Kangema MP, died in February following an illness while ministers Saitoti and Ojode died in a plane crash on June 10. Jubilee Insurance chief executive Patrick Tumbo said each of the bereaved families will get Sh10 million for life assurance cover. Mr Gichohi said the National Assembly paid Sh12.6 million as premium to Jubilee Insurance. "It was an open tender running from September 1, 2011 for renewal on August 31, 2012,” Mr Gichohi said. Mr Marende said all the 224 MPs are covered by Jubilee Insurance for life while Kenindia provides group personal accident policy. Life cover The Speaker said the life cover is for compensation of MPs who die from any other cause other than accident. The insurance cover, the Speaker said is to enable families of the deceased not to be left in squalor adding that it is one of most progressive things done by Parliament since independence. “The insurance cover takes care of welfare of Members and ensure Kenyans receive value from Parliament for services provided by representative institutions,” Mr Marende said. Mr Marende praised Jubilee for the prompt payment saying the firm acted differently from the notion that it is easy to pay premiums but getting the claims is not. Mr Tumbo said his firm released the claims even before receiving death certificates of the three former ministers. He said Jubilee is the top insurance firm in Kenya, Uganda and Tanzania in relation to medical, general, life and pension insurance. “Last year we were honoured by 12 awards including best risk management. Our chairman was also awarded life time achievement award while this year we were honoured for being the best in claims settlement. We are one of the best in the region and ISO certified,” Mr Tumbo said.

 

From left: Jubilee Insurance Company chief executive Patrick Tumbo, House Speaker Kenneth Marende and Clerk Patrick Gichohi during the presentation of a Sh30 million dummy cheque at Parliament Buildings June 28, 2012. The money will go the families of the late John Michuki, George Saitoti and Orwa Ojode. SALATON NJAU  

By LUCAS BARASA lbarassa@ke.nationmedia.com
Posted  Thursday, June 28  2012 at  13:21

The families of three MPs who died this year have received Sh10 million each by an insurance company.

Jubilee Insurance Company gave the families of the late Environment minister John Michuki, the late Internal Security minister George Saitoti and the late Internal Security assistant minister Orwa Ojode the money Thursday.

The families are also expected to get another Sh10 million each from Kenindia Insurance.

National Assembly Speaker Kenneth Marende and Clerk Patrick Gichohi received a Sh30 million dummy cheque from the insurer at Parliament Buildings.

The payments were transmitted to the accounts of the bereaved families electronically by their respective banks.

The late Michuki ,who was Kangema MP, died in February following an illness while ministers Saitoti and Ojode died in a plane crash on June 10.

Jubilee Insurance chief executive Patrick Tumbo said each of the bereaved families will get Sh10 million for life assurance cover.

Mr Gichohi said the National Assembly paid Sh12.6 million as premium to Jubilee Insurance.

"It was an open tender running from September 1, 2011 for renewal on August 31, 2012,” Mr Gichohi said.

Mr Marende said all the 224 MPs are covered by Jubilee Insurance for life while Kenindia provides group personal accident policy.

Life cover

The Speaker said the life cover is for compensation of MPs who die from any other cause other than accident.

The insurance cover, the Speaker said is to enable families of the deceased not to be left in squalor adding that it is one of most progressive things done by Parliament since independence.

“The insurance cover takes care of welfare of Members and ensure Kenyans receive value from Parliament for services provided by representative institutions,” Mr Marende said.

Mr Marende praised Jubilee for the prompt payment saying the firm acted differently from the notion that it is easy to pay premiums but getting the claims is not.

Mr Tumbo said his firm released the claims even before receiving death certificates of the three former ministers.

He said Jubilee is the top insurance firm in Kenya, Uganda and Tanzania in relation to medical, general, life and pension insurance.

“Last year we were honoured by 12 awards including best risk management. Our chairman was also awarded life time achievement award while this year we were honoured for being the best in claims settlement. We are one of the best in the region and ISO certified,” Mr Tumbo said.

Sh60m in MPs’ life cover paid

 

The Speaker of the National Assembly Hon. Kenneth Marende (centre) and the Clerk Mr. Patrick Gichohi (right) on June 28, 2012 receive a cheque valued at Sh30M from the Chief Executive Officer of Jubilee Insurance Company limited Mr. Patrick Tumbo (left) being life benefits for members of the families that lost three seating MPs recently. Photo/SALATON NJAU 

By NATION TEAM newsdesk@ke.nationmedia.com

In Summary

• Families of Michuki, Saitoti and Ojode expected to get Sh20 million each from Jubilee and Kenindia insurance companies

The families of three MPs who died this year have been awarded Sh10 million each by Jubilee Insurance Company.

The families of former Environment Minister John Michuki, former Internal Security Minister George Saitoti and his former assistant Orwa Ojode are expected to get another Sh10 million each from Kenindia Insurance.

National Assembly Speaker Kenneth Marende and Clerk Patrick Gichohi received a Sh30 million dummy cheque for the families from insurance giant Jubilee at Parliament Buildings on Thursday.

Mr Michuki who was Kangema MP died in February following an illness, while Saitoti and Ojode died in a plane crash on June 10.

Jubilee Insurance chief executive Patrick Tumbo said each of the bereaved families will get Sh10 million for life assurance cover.
Mr Gichohi said the National Assembly paid Sh12.6 million as premium to Jubilee Insurance. “It was an open tender running from September 1, 2011 for renewal on 31st August 2012,” Mr Gichohi said.

Mr Marende said all the MPs are covered by Jubilee Insurance for life, while Kenindia provides group personal accident policy.

The Speaker said the life cover is for compensation of MPs who die from any other cause other than accident.

The insurance cover, the Speaker said is to enable families of deceased not to be left in squalor adding that it is one of most progressive things done by Parliament since independence.

“The insurance cover takes care of welfare of members and ensure Kenyans receive value from Parliament from services provided by representative institutions,” Mr Marende said.

Mr Marende hailed Jubilee for the prompt payment, saying the firm acted differently from the notion that it is easy to pay premiums but getting the claims is not.

Mr Tumbo said his firm released the claims even before receiving death certificates for the three former ministers.

He said Jubilee is the top insurance firm in Kenya, Uganda and Tanzania in relation to medical, general, life and pension insurance.

“Last year, we were honoured by 12 awards including best risk management. Our chairman was also awarded life time achievement award while this year we were honoured for being the best in claims settlement. We are one of the best in the region, and are ISO certified,” Mr Tumbo said.

He said Jubilee which is marking its 75th anniversary also paid all its customers who suffered losses during the 2007 post-election violence.

“We are top of the range when it comes to insurance cover. We receive payments and honour claims promptly,” he said.
Insurance cover
Mr Tumbo thanked Parliament for passing legislation to assist the insurance industry, and encouraged Kenyans who are above 18 to take insurance covers.

“We need everybody to take insurance cover so that when misfortunes occur they are compensated and families be reinstated to the state they were before the loss. We are also trying to make insurance available to low income earners, church groups and school children,” Mr Tumbo said.

Meanwhile, Mr Marende said it would take a little bit longer before voters in three constituencies whose MPs died this year could elect their replacements.