NAIROBI, Kenya Jun 24 – Players in the pensions and retirement arena have been challenged to develop products that are suitable for the informal sector whose participation in the the retirement benefits industry is less than 1%.
Chief Manager of the Supervisions Department at the Retirement Benefits Authority (RBA), Charles Machira affirmed the Authority’s commitment to supporting the creation quality pension products to serve the Kenyan populace and increase the pensions penetration, which is he said currently at about 20% of the labour force.
Machira was speaking during the launched of the Cytonn Asset Managers Pensions Business.
Part of the mandate of RBA is to develop and promote the retirement benefits sector, and we are glad to work hand in hand with Cytonn Asset Managers to increase coverage for citizens,” he said.
The new Cytonn pensions business consists of three products: the Cytonn Personal Retirement Benefits Scheme, the Cytonn Umbrella Retirement Benefits and an income drawdown fund which will target retiring members of pension schemes by offering them the alternative of investing their accrued retirement benefits and be assured of periodic income based on frequency of their choice.
The Personal Retirement Benefits Scheme targets self-employed individuals in the informal sector, and professionals such as doctors and lawyers, who don’t belong to any pension scheme and are seeking a vehicle to save for their retirement while the Umbrella Retirement Benefits Scheme will target employers who don’t have a pension scheme of their own and would like to enable their employees save for their retirement in an arrangement where the employer and employee both contribute.
“This is yet another milestone by Cytonn in its bid to increase its regulated products offering. The launch of the pensions business that is regulated by the Retirement Benefits Authority (RBA) goes a long way towards the actualization of the firm’s objectives, which is to deliver above average returns to its clients,” said David Mwakitele, Head of Pensions at Cytonn.
Mwakitele noted, “We are proud to expand our pension product portfolio, in line with our core objective of delivering above average returns to all our clients, including our pensioners. We shall bring the same Cytonn ethos of delivering above average returns and focusing on the interest of the client in the management of these funds.”
“As Cytonn Asset Managers Limited, we remain committed to supporting the Authority in enhancing education to the public on the importance of saving for retirement to secure their financial future post-retirement and consequently enabling more people to save for their retirement,” said Mwakitele.
The Principal Officer, Victor Odendo said, “The launch of our pensions business now gives Cytonn Asset Managers a comprehensive set of products to deliver. Our Fund Management license from the Capital Markets Authority (CMA) enabling us to launch the Unit Trust Business and we have seen Cytonn Money Market Fund become the #1 ranking fund by yield.”
Olende also revealed that they have received a Real Estate Investment Trust (REIT) Manager License from CMA.