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Transferring Your Retirement Benefits Between Pension Schemes in Kenya

Faith Ndunda by Faith Ndunda
July 23, 2025
in Analysis, Investments, Money, Pensions
Reading Time: 2 mins read

According to the Retirement Benefits Authority (RBA), members of pension schemes have the right to transfer their accumulated benefits to another registered pension scheme. Individuals typically switch schemes due to change of jobs or to benefit from a better performing scheme. Notably, one does not incur any tax penalties when transferring the benefits. Transferring your benefits lets you stay on track, preserve savings, and benefit from compound interest. Despite this, RBA reports that only 9.0% of Kenyans transfer or defer their benefits, highlighting a significant gap in awareness and action.

The process begins with identifying a suitable retirement scheme. When choosing a scheme, one should consider factors such as fund performance, contribution flexibility and product features such as life cover and medical cover options.

Once you have identified your new scheme, you need to notify your current scheme administrator in writing. The written request includes the membership details, the name and registration number of the receiving scheme and authorization to transfer the member’s savings and reserves to the new scheme. If your current scheme includes an actuarial reserve, such as post-retirement medical plan and life cover, an actuarial valuation is carried out to determine its value before the transfer.

Upon receiving your request, the trustees of the current scheme are required to transfer the benefits within 60 days or the timeframe specified under that scheme. They will coordinate with the new scheme to ensure all your savings, comprising of your employer’s contributions, your own contributions and accrued investment returns, are transferred. To confirm the transfer, you can request statements from the new scheme.

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Once the transfer is complete, you can resume contribution immediately. If you are employed, notify your payroll office on the change in scheme. For self-employed individuals, simply resume your contributions to the new scheme. This is also a good opportunity to consolidate any other dormant accounts into your new scheme for better tracking and growth potential.

For individuals seeking an affordable and flexible option, the Cytonn personal scheme (CPRBS) is ideal. The Cytonn umbrella scheme (CURBS) is suitable for employers seeking to consolidate their staff pension savings under one scheme, particularly if they are seeking strong returns and contracting out of NSSF Tier II contributions. CURBS and CPRBS offer seamless transfer of pension savings, letting members grow and preserve their savings.

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Faith Ndunda

Faith Ndunda

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