November 10, 2024

RBA Warns Pension Schemes Against None remittance of Statutory Deduction

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By Raymond Mwakwaya

Email, thecoastnewspaper@gmail.com

Retirement Benefits Authority (RBA) has warned key government institutions for non-remittance of pension schemes’ contributions.

RBA lists County governments, state parastatals and public universities as notorious for abbeting the vice.

Tom Kiptanui, RBA senior official, asked the affected institutions to develop strategies of resolving the pending bills stalemate.

“We are alive to the fact that we have some institutions that have been struggling. We are talking to them within our regulatory frameworks to encourage them to develop remedial plans on how to get themselves out of that burden,” he said.

According to him the sector now banks on the recent formed RBA policy to stimulate the sector grown from its current 26 per cent pension uptake coverage countrywide.

“The future of pension, actually depends on this policy implementation, one thing that has come out is how to increase the coverage from the current 26 percent.”

This comes as players in the pension sector are  appealing to the  government to introduce proper policies that would stimulate the multi-million industry.

Although the pension schemes uptake remain low as at 13 percent in the informal sector, the players are positive of a significant turn around if good policies are accommodated.

Speaking in Mombasa during the ongoing Zamara Pension Convention, its chief executive officer Sundeep Raichura points out that tax incentives to pension schemes will be a sigh of relief on pensioners’ contributions.

“We have proposed tax incentives to the regulator and we hope the regulator will consider that, because we need to work together through consultation to grow the sector together,” he said.

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