As small and medium-sized enterprises (SMEs) continue to play an important role in Kenya’s economy, attracting and retaining skilled employees remains a key priority. While salary is an important consideration when choosing an employer, employees are increasingly looking beyond their monthly pay to benefits that support their long-term financial wellbeing. One way SMEs can strengthen their employee value proposition is by offering a structured pension benefit.
For many SMEs, establishing a pension scheme may appear costly or complicated, particularly when compared to larger organizations with dedicated human resource and finance teams. However, pension benefits do not have to be difficult to implement. Umbrella retirement benefits schemes provide SMEs with an opportunity to offer employees structured retirement savings without having to establish and manage a standalone pension scheme.
A pension scheme can also help SMEs attract and retain talent. Employees are more likely to value an employer that demonstrates an interest in their financial future. Offering retirement benefits alongside salary, leave and other workplace benefits can therefore make an SME more competitive when hiring skilled employees. It can also encourage employees to remain with the organization for longer as they build their retirement savings.
Beyond employee retention, pension contributions can encourage a culture of long-term financial planning. Employees who regularly contribute towards retirement are able to build savings over time and benefit from investment returns and compounding. Starting early is particularly important because even relatively small contributions can accumulate significantly over a longer period.
For SMEs looking for a flexible way to introduce retirement benefits, the Cytonn Umbrella Retirement Benefits Scheme (CURBS) provides an alternative to establishing a standalone scheme. The umbrella structure allows different employers to participate in one professionally managed retirement benefits arrangement while benefiting from shared administration and governance structures.
CURBS also provides flexibility for employers and employees, with options designed to accommodate different retirement savings needs. Members can access regular statements and retirement planning support, while employers benefit from professional administration, reporting and compliance support. The scheme also provides opportunities for additional benefits and member education, helping employees better understand their retirement savings.
As SMEs continue to compete for talent while managing operating costs, pension benefits can provide a practical way to strengthen their overall employee offering. More importantly, providing employees with a structured path to retirement savings can contribute to greater financial preparedness in the long run. For SMEs that may not be ready to establish their own standalone scheme, an umbrella retirement benefits scheme such as CURBS can provide a flexible starting point for building a stronger retirement savings culture.
