In Kenya, umbrella pension schemes offer an efficient and cost-effective way for employers to secure the retirement savings of their employees. Rather than setting up a dedicated pension scheme, companies can join these collective investment plans, benefiting from economies of scale, minimal administrative burden, and professional fund management. This guide provides an updated list of registered umbrella pension schemes in Kenya, regulated by the Retirement Benefits Authority (RBA).
What is an Umbrella Pension Scheme?
An umbrella pension scheme is a collective retirement savings plan that pools the contributions of various employers. These schemes are particularly beneficial for small and medium-sized enterprises (SMEs) that may not have the resources or expertise to establish their own pension schemes. They offer a flexible, low-cost solution while ensuring that employees have access to a robust retirement savings vehicle.
Key advantages of umbrella pension schemes include:
- No setup costs: Employers can avoid the financial and operational burden of setting up individual schemes.
- Low running costs: Operational costs are shared among the participating employers, reducing the expense for each.
- Reduced administration: The administrative duties, such as compliance with regulatory requirements and management of employee contributions, are handled by the umbrella scheme administrators.
The Retirement Benefits Authority (RBA), a regulatory body established under the Retirement Benefits Act, oversees all registered pension schemes in Kenya, ensuring they meet regulatory standards for the protection of members’ savings.
List of Registered Umbrella Pension Schemes in Kenya
Here is a list of umbrella pension schemes that are registered and regulated by the Retirement Benefits Authority in Kenya:
- ABSA Umbrella Retirement Benefits Fund
- Amana Umbrella Pension Scheme
- APA Life Umbrella Retirement Fund
- British American Insurance Umbrella Retirement Fund
- CIC Umbrella Retirement Benefits Scheme
- CICAM Umbrella Retirement Fund
- Co-optrust Investment Retirement Benefits Scheme
- County Pension Fund
- County State Officers (Umbrella) Pension Fund
- Cytonn Umbrella Retirement Benefits Scheme
- Enwealth Umbrella Fund
- Equity Umbrella Retirement Fund (Provident Section)
- Equity Umbrella Retirement Fund (Pension Section)
- Fusion Umbrella Retirement Benefits Scheme
- Genafrica Kivuli Umbrella Provident Fund
- ICEALION Umbrella Retirement Benefits Scheme
- ICEALION Guaranteed Umbrella Fund
- Jubilee Financial Services Limited Umbrella Fund
- Kenindia Umbrella Provident Fund
- Kenya Orient Umbrella Pension Fund
- Kivuli Umbrella Fund
- KUSSCO Mutual Umbrella Retirement Benefits Scheme
- KUZA Umbrella Retirement Benefits Fund
- Liberty Life Boresha Maisha Umbrella Fund
- Liberty Life Umbrella Pension Fund
- Madison Umbrella Retirement Benefits Scheme
- Minet Kenya Umbrella Retirement Fund
- Mwavuli Pension Fund
- NCBA Umbrella Retirement Benefits Scheme
- Ngao Umbrella Pension Scheme
- NTISL Umbrella Retirement Benefits Scheme
- Octagon Umbrella Retirement Benefits Scheme
- Old Mutual Umbrella Retirement Benefits Scheme
- Sanlam Umbrella Retirement Fund
- Pioneer Umbrella Retirement Fund
- Prudential Umbrella Retirement Benefits Scheme
- Suluhu Umbrella Scheme
- Takaful Umbrella Fund
- The Jubilee Insurance Umbrella Scheme
- The Kenyan Alliance Insurance Company Limited Umbrella Fund
- The Monarch Umbrella Retirement Fund
- UAP Umbrella Retirement Benefits Scheme
- WASPA (Umbrella) Pension Fund
- Zamara Fanaka Retirement Fund (Provident Section)
- Zamara Fanaka Retirement Fund (Pension Section)
How to Choose the Right Umbrella Pension Scheme
When selecting an umbrella pension scheme for your organization, there are several key factors to consider:
- Investment Strategy: Different umbrella pension schemes may follow different investment approaches—some might offer more conservative options, while others pursue higher-risk, higher-reward strategies.
- Fees and Charges: Understanding the fee structure, including management and administrative fees, will help you assess the long-term cost-effectiveness of the scheme.
- Fund Performance: Review the historical performance of the pension fund to gauge its ability to grow employees’ retirement savings.
- Reputation and Expertise of the Scheme Manager: The experience and reputation of the pension scheme manager are critical in ensuring the scheme’s stability and performance.
- Flexibility: Some schemes offer more flexibility in terms of contribution levels, withdrawal options, and the types of benefits available to members.
- Customer Service: A responsive and transparent customer service team is essential for addressing employer and employee queries and ensuring smooth administration.
How Umbrella Pension Schemes Work in Kenya
Employers and employees contribute a percentage of the employee’s monthly salary to the pension scheme. Contributions are pooled together and invested in a range of assets, including stocks, bonds, real estate, and government securities, with the aim of growing the retirement savings over time.
Upon retirement, members of the umbrella pension scheme can access their accumulated savings either as a lump sum or through regular pension payments, depending on the terms of the scheme.
Retirement Benefits Authority (RBA) Contacts
If you have any questions or need further assistance, you can contact the Retirement Benefits Authority (RBA), which oversees the regulation and supervision of all pension schemes in Kenya:
- Address: Rahimtulla Tower, 13th Floor, Upper Hill Road, Opposite UK High Commission, Nairobi
- Phone: 020 280 9000 / Toll-Free No: 0800720300 (Safaricom)
- Website: RBA Kenya
Umbrella pension schemes offer a valuable retirement savings option for employers looking to provide their employees with a pension without the complexities of managing an independent scheme. With a wide range of registered umbrella pension schemes in Kenya, employers can choose a plan that best meets their financial goals and provides security for their employees’ future.
As more businesses recognize the importance of offering robust retirement plans, umbrella schemes are gaining popularity for their affordability, flexibility, and professional fund management. Whether you are a small business or a large corporation, joining an umbrella pension scheme is an excellent way to enhance employee benefits while ensuring compliance with Kenya’s pension regulations.
