Members of retirement benefits schemes would soon start purchasing residential houses using part of their pension savings.
This follows the gazettement of The Retirement Benefits (Mortgage Loans) (Amendment) Regulations 2020 vide Legal Notice 192 dated 14th September 2020.
Pension schemes have 12 months to domesticate the regulations and guide their members on how to access the funds.
According to the regulations, Kenyans will access up to 40 percent of their accrued benefits for residential house purchase provided the sum shall not exceed seven million shillings.
However, scheme members already receiving pension earning, members already on early retirement, and those that have attained the retirement age will not benefit from this new provision.
The Regulations can be downloaded from the Authority’s website (www.rba.go.ke) or The National Council for Law Reporting website (www.kenyalaw.org alongside the following regulations that have also been approved and gazetted:
- The Retirement Benefits (Forms and Fees) (Amendment) Regulations 2020- Legal Notice No. 115 dated 30th June 2020.
- The Retirement Benefits (Forms and Fees) (Amendment) Regulations 2020- Legal Notice No. 191 dated 14th September 2020.
- The Retirement Benefits (Umbrella Retirement Benefits Schemes) (Amendment) Regulations 2020- Legal Notice 193 dated 10th September 2020
- The Retirement Benefits (Mortgage Loans) (Amendment) Regulations 2020- Legal Notice 192 dated 14th September 2020.
The Retirement Benefits Authority was established under the Retirement Benefits Act, Cap 197 to regulate and supervise the establishment and management of retirement benefits schemes.
For queries regarding the Retirement Benefits Industry or your pension scheme please call RBA on toll free number: 0800720300 and follow the prompts.