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Insurers’ pension claims fall Sh860m on new law
Association of Kenya Insurers (AKI) chief executive Tom Gichuhi. AKI's annual report shows that pension claims fell to Sh23.65 billion in 2019 from Sh24.51 billion the previous year.
Photo credit: Diana Ngila | Nation Media Group
What you need to know:
- An annual report of the Association of Kenya Insurers (AKI) shows that pension claims fell to Sh23.65 billion in 2019 from Sh24.51 billion the previous year despite an increase in savings for retirement by members.
- Chief executive Tom Gichuhi has attributed the drop to an amendment to the Retirement Benefits (Occupational Retirement Benefits Schemes) Regulations in the financial year 2018/19.
- The move was intended to discourage the use of the pension funds upon the termination of their employment either by resignation or layoffs.
- Over the period, AKI reported average net interest rate for deposit administration contributions at 9.94 per cent.
Pension payouts by insurers dropped by Sh860 million last year compared to the previous year following a short-lived law that limited access to employer's contribution fund, a new report shows.
An annual report of the Association of Kenya Insurers (AKI) shows that pension claims fell to Sh23.65 billion in 2019 from Sh24.51 billion the previous year despite an increase in savings for retirement by members.
