Retirement Benefits Sector Consultative Forum.
The National Treasury Principal Secretary, Dr. Chris Kiptoo, CBS today gave a key note address during the Retirement Benefits Sector Consultative Forum held at the Sarova Panafric hotel, Nairobi.
Speaking during the forum, PS Kiptoo emphasized the Government's commitment towards building a sustainable, inclusive, and secure retirement benefits system for all Kenyans.
The consultative forum convened at a time when the pensions sector is encompassed by significant economic, demographic, and policy transformations. It is a moment to reflect on our journey, a journey that began in 1997 with the enactment of the Retirement Benefits Act – a legislation that led to the establishment of a dedicated regulatory agency and the laying of minimum standards for managing retirement schemes. Since then, the sector has experienced remarkable progress.
In his remarks the PS said that Kenya’s economy has remained resilient despite the numerous domestic and external shocks as demonstrated by growth of 5.6% in 2023 up from 4.9% in 2022. The growth in 2023 was above its pre-pandemic average of 4.7% per year for the period between 2011 and 2019. The diversified structure of the economy remains a key source of resilience for the Kenyan economy to domestic and external shocks. In the first quarter of 2024, the economy grew by 5.0%, compared to a growth of 5.5% in the corresponding quarter of 2023.
On Kenya’s financial services the sector remains a key pillar of economic growth, playing an integral role in resource mobilization, capital formation and ultimate economic expansion. The financial sector saw moderate growth in 2024, with the third quarter expanding by 4.7% compared to 15.5% in a similar period in the previous year.
Amidst this macroeconomic landscape, the retirement benefits sector has quietly emerged as a pillar of stability. Today, assets under management exceed Ksh. 2.2 trillion, accounting for approximately 13% of the country’s GDP. This is a testament to the sector’s central role in mobilizing long-term savings, supporting capital markets, and providing a safety net for retirees.
The establishment of the Retirement Benefits Authority(RBA) in the year 2000 marked a turning point in our journey. At that time, the sector was fragmented, informal, and largely unregulated.
"Today, we are proud to have a well-structured industry with over 1,031 registered schemes, strengthened governance, and enhanced oversight'', said the PS.
Kenya has witnessed the evolution of pension products, with increasing inclusion of previously excluded groups—particularly low-income earners. This has been achieved through investment diversification, ensuring that pension funds are invested in secure, long-term assets that deliver value and ensure sustainability.
The PS appreciated the contributions leading to notable achievements that resulted from collaborative efforts across the sector—from regulators and trustees to fund managers and administrators.
In the public sector, one of the most significant reforms has been the establishment of the Public Service Superannuation Scheme (PSSS), marking a shift from defined benefit to defined contribution arrangements. This change addresses legacy challenges such as delayed benefit payments and rising liabilities, while promoting fiscal sustainability and transparency.
The PS reaffirmed the National Treasury’s unwavering commitment to enhancing the pensioner experience—through technology, innovation, and service modernization, which is not only a strategic move but a moral imperative and a key pillar of our broader public service pension reform agenda.
In his closing remarks, the PS said that the establishment of the Kenya National Entrepreneurs Savings Trust (KNEST) presents a promising model that will extend coverage for the informal sector workers. Nonetheless, the government continues to strengthen KNEST by addressing gaps identified and ensure successful implementation of the scheme.
The National Treasury, continuously supports policies and reforms that uphold equity, efficiency, and social protection. Hence the need to work together as retirement benefits players to ensure that no Kenyan is left behind.
Present at the event were; The Chairman and Chief Executive Officer of the Retirement Benefits Authority, Members of the RBA Board, among others.
#Let our legacy be one of dignity, security, and hope for every retiree, today and for generations to come.