Sharp Daily
No Result
View All Result
Friday, July 11, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home Pensions

The role of the RBA in regulating pension schemes in Kenya

Faith Ndunda by Faith Ndunda
April 23, 2025
in Pensions
Reading Time: 2 mins read

The Retirement Benefits Authority (RBA) is the regulatory body mandated to oversee and supervise pension schemes in Kenya. Established under the Retirement Benefits Act, the RBA’s primary goal is to protect the interests of pension contributors and ensure that retirement benefits are secure, well-managed and paid out efficiently.

A critical aspect of the RBA’s role is enforcing investment portfolio allocation limits for pension schemes. These limits are designed to ensure prudent fund management and mitigate risks. For instance, pension schemes are allowed to invest up to 90.0% of their assets in government securities, which are considered low-risk investments. Investments in equities are capped at 70.0%, while real estate investments are limited to 30.0% of the total portfolio. Offshore investments, private equity, guaranteed funds and other asset classes also have limits, ensuring that schemes maintain a balanced and diversified portfolio. These limits are crucial in preventing over-concentration in high-risk assets and protecting the financial stability of pension funds.

A key requirement under the Act is that all pension schemes must appoint trustees and custodians, whose roles are integral to their governance. Trustees are responsible for overseeing the administration of the scheme, ensuring compliance with regulations and acting in the best interests of members. They play a pivotal role in decision-making, including investment strategies and benefit disbursement. Trustees are required to undergo formal training and certification by the RBA. Custodians, on the other hand, are tasked with safeguarding the scheme’s assets. They ensure that funds are securely held and managed in accordance with trustees’ directives and regulatory requirements. They provide an extra layer of security by ensuring that scheme funds are not misused or misappropriated.

In addition to supervision and licensing, the RBA promotes good governance, transparency and financial education.  Public education campaigns are also run to encourage retirement planning and boost participation in pension schemes, especially among informal sector workers. The RBA also prioritizes the protection of pension scheme members by addressing issues such as fraud, mismanagement and insolvency. Regular audits and compliance checks are conducted to ensure schemes operate transparently and adhere to established guidelines. Additionally, the RBA provides mechanisms for dispute resolution, enabling members to address grievances effectively.

RELATEDPOSTS

SIB granted license to manage pension funds

March 7, 2024

The RBA’s regulatory framework is vital for the effective functioning of pension schemes in Kenya. By setting specific investment limits, protecting members, and mandating the roles of trustees and custodians, the RBA fosters a robust pension system that supports the financial well-being of Kenyans. This framework not only enhances confidence in retirement planning but also contributes to the broader economic stability of the country.

Previous Post

Ruto’s appointment of Raila’s nephew and its political impact

Next Post

Planning your first Safari in Kenya? Read this first

Faith Ndunda

Faith Ndunda

Related Posts

Money

Why Employers Should Prioritize Pensions Over One-Time Gratuity Payments

July 10, 2025
Pensions

The importance of Investment Policy Statements (IPS) for pension schemes in Kenya

July 4, 2025
Pensions

Understanding Life Cover as an Additional Benefit in Retirement Benefit Schemes

July 4, 2025
News

Private vs Public Pension Funds in Kenya

June 30, 2025
Pensions

Understanding how to access your pension savings in Kenya.

June 27, 2025
1049795356
Pensions

CIDDF vs Annuities: Choosing the Smarter Retirement Income Option

June 19, 2025

LATEST STORIES

Why Employers Should Prioritize Pensions Over One-Time Gratuity Payments

July 10, 2025
Business and Finance Concept - Coin, Currency, Financial Item, Graph,

Opinion: Why lower taxes may be Kenya’s only escape route

July 10, 2025

Nvidia becomes the first company globally to hit USD 4.0 trillion market value

July 10, 2025

Privatization in Kenya: A new dawn for capital markets and fiscal stability

July 10, 2025

How Kenya is future-proofing its economy against illicit finance

July 9, 2025

The importance of Investment Policy Statements (IPS) for pension schemes in Kenya

July 4, 2025

Understanding Life Cover as an Additional Benefit in Retirement Benefit Schemes

July 4, 2025

Del Monte foods files for bankruptcy in USA

July 3, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024