Pensions Body Pushes For Mandatory Pension Contributions

The Association of Pension Trustees and Administrators of Kenya (APTAK) has advocated for mandatory pension savings for all citizens to ensure financial security and stability for individuals in their retirement years.

Speaking at the APTAK 3rd International Annual Conference, the organisation’s president Hosea Kili emphasised the importance of saving for pension noting that just as saving for affordable housing and universal health insurance are now statutory contributions through the housing levy and health insurance fund have been successfully implemented, it is crucial to advocate for compulsory pension savings in the same breadth.

The three-day conference with the theme, ‘Navigating the Nexus of Sustainability and Social Equity in Pension Investments’ highlighted the critical role of pension funds in building a stronger, more equitable future for Kenyans.

This year’s conference brought together pension trustees, administrators, regulators, investment professionals, and policymakers to discuss critica
l issues impacting the sustainability and resilience of Kenya’s pension sector.

Kili reiterated that the Kenyan pension industry manages assets exceeding Sh1.7 trillion. He underscored the industry’s efforts to make joint investments to drive national development.

He further underscored the importance of collaboration and cooperation in mobilizing these resources effectively and stressed the need to enhance the regulatory framework governing pension schemes in Kenya to prevent gaps that could lead to the mismanagement or leakage of members’ funds.

‘We expect by the close of the meeting that we can come up with all clear modalities to drive the agenda of saving by enhancing saving for pension in our country,’ Kili said.

‘The 3rd Annual APTAK Conference has been a resounding success, as stewards of pension funds, we must adopt a more holistic approach to our investment strategies and navigate the complexities of sustainable investing. This conference has not only sparked meaningful dialogues but also spurre
d collaborative action towards nurturing a more sustainable and inclusive future,’ he added.

Participants at the conference engaged in enriching discussions on the imperative for sustainable investment solutions while underscoring the pivotal role of industry players in fostering innovation, leveraging novel asset classes, and identifying unique opportunities for impact investments that inherently yield positive returns.

They also brainstormed the challenges faced by pension institutions in today’s economic landscape, emphasizing the necessity for generating sustainable returns, adeptly managing risks, and securing the long-term viability of pension funds.

Among resolutions that emerged from the conference discussions, included establishing a group investment committee to sign a memorandum of understanding with key stakeholders such as Fund Managers Associations, APTAK, NSE, CMA, and RBA.

This strategic collaboration is aimed at pooling resources for financing bankable projects in private equity and infra
structure sectors.

‘This year’s conference has set a strong foundation for collaboration, innovation, and sustainable growth in Kenya’s pension sector, promising a brighter future for retirees and the nation as a whole,’ Kili observed.

APTAK is a non-profit making organization registered under the Societies Act, Chapter 108 of the Laws of Kenya.

The Association’s main objective is to provide a forum for deliberations, discussions, and consultations on prudent trusteeship and administration affecting members of the association and make recommendations, if any to the Retirement Benefits Authority and matters incidental thereto.

Source: Kenya News Agency