Retirement Benefits Authority (RBA) is seeking legislative amendments to the Retirement Benefits Act and policy regulations to better regulation of the sector.

The proposed Retirement Benefits Laws (Amendments) Bill 2024, seeks to among other things, allow access to retirement benefits by proposing that members be allowed to access part of their accrued benefits before attaining the retirement age of 60.

Speaking in Kakamega during a public participation forum, a legal officer at RBA Anthony Kiaraha said the proposed changes are seeking the introduction of a two-pot system, allowing partial, early access to savings for specific needs like education, housing or medical bills.

“The proposed amendments seek to provide access to part of the savings for scheme members in financial distress without requiring them to resign from their jobs, whilst at the same time avoiding destitution in old age,” Kiaraha said.

To tackle the issue of unremitted contributions especially from county governments and other public institutions, the RBA seeks to amend the law to directly sanction Chief Executive Officers (CEO’s) and accounting officers for failing to remit statutory deductions.

Under the proposed laws, RBA also seeks to empower Kenya Revenue Authority (KRA) to act as a collection agent for unremitted contributions.

Kiaraha explained that RBA was created to consolidate the previously unregulated private pension sector, which had been dominated by insurance companies operating without adequate oversight. He outlined RBA’s four core functions: regulating and supervising schemes and service providers, protecting members and sponsors, developing the sector and advising the Cabinet Secretary on policy matters.

Lazarus Kezia, Deputy Executive Officer of RBA, opened the session on behalf of the Chief Executive Officer and emphasized the critical role of citizen engagement in shaping legislation that directly affects workers’ savings and retirement security.

Kezia specifically acknowledged the presence of chiefs, assistant chiefs, and county commissioners, noting that their involvement would facilitate grassroots communication of the proposed changes to government employees enrolled in contributory pension schemes.

The authority revealed that the retirement benefits sector currently holds assets totalling approximately Ksh2.81 trillion, with the National Social Security Fund (NSSF) being the largest supervised scheme followed by the Public Service Superannuation Scheme.

“We currently have 1,032 pension schemes in the country with an assets portfolio of about Ksh2.81 trillion,” he added.

Investment portfolios are predominantly concentrated in government bonds, with additional allocations to equities and immovable property, underscoring the importance of robust regulatory frameworks.

“The Kakamega forum represents a critical step in RBA’s nationwide consultation process before finalizing amendments for the 2026-2027 financial year legislative program,” Kezia pointed out.

• A Tell Media / KNA report / B Geofrey Wang’anya and George Kaiga