By Leviticus Adaki
The National Treasury and Economic Planning has published the National Retirement Benefits Policy, a comprehensive framework aimed at harmonizing, coordinating, and enhancing the retirement benefits sector.
The Policy endeavors to ensure provision of affordable, adequate and sustainable retirement benefits in old age.
The policy was approved on 3rd November 2023, in alignment with Article 43(e) and Article 57 of the Constitution of Kenya. This underscores the government’s commitment to enhancing social security and promoting the well-being of older members of society. Through collaborative efforts and effective implementation of the National Retirement Benefits Policy, Kenya aims to build a more inclusive and sustainable future for its citizens.
The key objectives of the policy include:
(i) Legal and Regulatory Framework Harmonization: Streamlining and integrating existing legal provisions governing the retirement benefits sector.
(ii) Enhanced Coverage: Expanding retirement benefits coverage to encompass a broader spectrum of the population.
(iii) Governance and Sustainability: Implementing mechanisms to ensure good governance and sustainability of retirement benefits, thereby fostering growth and diversification of investment funds.
(iv) Portability: Facilitating the transfer of retirement benefits between schemes and across borders to accommodate individuals’ mobility.
(v) Innovation: Promoting and facilitating innovation within the retirement benefits sector to adapt to evolving societal and economic dynamics.
(vi) Affordability and Adequacy: Ensuring that retirement benefits are both affordable and adequate for all workers, regardless of their income level.
(vii) Regulation of Payout Phase: Regulating the payout phase of retirement benefits to safeguard the interests of retirees.
(viii) Post-Retirement Medical Benefits and Old Age Care: Promoting access to post-retirement medical benefits and establishing provisions for old age care.
(ix) Sub-Funds Establishment: Creating sub-funds within retirement schemes to cater to specific needs and preferences of members during the saving for retirement phase.
The National Treasury and Economic Planning invites the public and stakeholders to acquaint themselves with the National Retirement Benefits Policy, which can be accessed from the National Treasury website: https://www.treasury.go.ke/public-notices/ and the Retirement Benefits Authority website https://www.rba.go.ke/downloads/?tax%5Bwpdmcategory%5D=public-and-industry-notices#
We encourage active engagement and participation from all stakeholders as we collectively work towards ensuring a secure and dignified retirement for all Kenyan citizens.
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